Karachi, September 05, 2023 (PPI-OT): KSE-100 likely to re-test resistance at the 50-DMA

KSE-100 index witnessed another positive session to close at 45,707, up 395 points DoD. Volumes stood at 139mn shares versus 162mn shares traded previously. The index is expected to re-test resistance at the 50-DMA that is standing at 45,833 level where a break above this level will initiate the recovery trend with 47,394 as the recovery target. However, any downside will find support in the range of 45,450-45,650 levels. Meanwhile, the RSI has improved and the Stochastic Oscillator has generated a buy signal, supporting recovery view. We recommend investors to 'Buy' above the 50-DMA. The support and resistance are at 45,507 and 45,848 levels, respectively.

MLCF: RSI generated a Buy signal

Strategy: 'Buy on dips' - targeting Rs28.43 and Rs30.44; stoploss at Rs26.25.

HCAR: Upside target remains intact

Strategy: 'Buy on dips' - targeting Rs110.00 and Rs116.29; stoploss at Rs100.00.