Karachi, October 21, 2022 (PPI-OT): KSE-100; Consolidation expected above 50-DMA

After making a high of 42,422, KSE-100 index slid to close at 42,137, down 89 points DoD. Volumes stood at 268mn shares versus 250mn shares traded previously. Despite of a negative closing, the index is trading above the 50-DMA that will restrict downside at 42,084. However, a fall below the 50-DMA will target the 30-DMA that is currently at 41,652. Meanwhile, any upside will face resistance at 42,422 where a break above that will extend the gain towards 43,227 (200-DMA). The indicators are mixed, signalling no clear trading view. JS Securities Limited recommends investors to stay ‘long’ above the 50-DMA. The support and resistance are at 42,015 and 42,340 levels, respectively.

OGDC: Upside target remains intact

Strategy: ‘Buy on dips’ – targeting Rs75.70 and Rs78.73; stoploss at Rs71.80.

MLCF: Limited downside risk

Strategy: ‘Buy on dips’ – targeting Rs30.34; stoploss at Rs28.19.