Karachi, October 28, 2021 (PPI-OT): KSE-100; Resistance test at the 200-DMA

The KSE-100 index posted a gain of 564 points to close at 45,792. Volumes stood at 180mn shares as compared to 163mn shares traded previously. The index is expected to test resistance at the 200-DMA that currently stands at 46,184 and a break above the said level will extend the gain towards 47,387. However, any downside will find support in the range of 45,540-45,780 where a fall below will kick off the downtrend with 44,237 in sight. The RSI and MACD have also shown improvement, supporting a positive view. Investors are recommended to ‘Buy on dips’, with risk defined below the 30-DMA. The support and resistance are at 45,545 and 46,032 points, respectively.

HCAR: Recovery expected

Strategy: ‘Buy on dips’ – targeting Rs253.49; stoploss at Rs216.11.

ISL: Upside to continue

Strategy: ‘Buy on dips’ – targeting Rs87.90 and Rs89.09; stoploss at Rs78.09.