Karachi, October 25, 2022 (PPI-OT): KSE-100; Consolidation to continue above 50-DMA

KSE-100 index failed to sustain its intraday high of 42,672 and slid to close at 42,347, up 134 points. Volumes stood at 227mn shares versus 290mn shares traded previously. The index is expected to revisit yesterday’s high where a break above that will target 200-DMA that currently is at 43,205. However, any downside will find support at 42,045 (50-DMA) where a fall below that will extend the decline towards the 30-DMA at 41,677. The RSI and the MACD are heading up, supporting a positive view. JS Securities Limited recommends investors to ‘Buy on dips’, keeping stop-loss below the 50-DMA. The support and resistance are at 42,150 and 42,609 levels, respectively.

PPL: Recovery likely

Strategy: ‘Buy on dips’ – targeting Rs60.04 and Rs63.81; stoploss at Rs55.13.

MLCF: Moving averages to restrict downside

Strategy: ‘Buy on dips’ – targeting Rs30.28; stoploss at Rs28.20.