Karachi, September 20, 2021 (PPI-OT): KSE-100; An Engulfing Bear – stay cautious

The KSE-100 index posted a loss of 284 points to close at 46,636. Volumes stood at 387mn shares versus 405mn shares traded previously. The index is likely to consolidate at current levels. Meanwhile, a drop below Friday’s low of 46,555 will extend the decline towards the 200-DMA at 45,849. However, any upside will continue to face resistance in the range of 47,180-47,335 where a break above these levels will target 48,145. The RSI and the MACD have also moved down, supporting our negative view. JS Securities Limited recommends investors to ‘Sell’ on the higher side, keeping stoploss above the 50-DMA. The support and resistance are at 46,400 and 47,027, respectively.

SNGP: 200-DMA to restrict upside

Strategy: ‘Sell on Strength’ – targeting Rs37.40; stoploss at Rs44.46.

UBL: Correction expected

Strategy: ‘Sell on Strength’ – targeting Rs117.65; stoploss at Rs125.10.