Karachi, October 24, 2022 (PPI-OT): KSE-100; Consolidation to continue

KSE-100 witnessed a volatile session to close at 42,213, up 76 points DoD. Volumes stood at 290mn shares versus 268mn shares traded previously. The index is still trading above the 50-DMA that will restrict downside at the 42,071 level, however, a fall below this level will target the 30-DMA that currently stands at 41,660. Meanwhile, any upside will face resistance in the range of 42,240-42,450 where a break above that will extend the gain towards 43,216 level. The RSI and the MACD are moving up, supporting a positive view. We recommend investors to ‘Buy on dips’, with risk defined below the 50-DMA. The support and resistance are at 41,923 and 42,375 levels, respectively.

OGDC: Indicators are heading up

Strategy: ‘Buy on dips’ – targeting Rs75.48 and Rs78.44; stoploss at Rs71.80.

MLCF: Moving averages to restrict downside

Strategy: ‘Buy on dips’ – targeting Rs30.31; stoploss at Rs28.19.