Karachi, September 26, 2022 (PPI-OT): KSE-100 expected to test its recent low; stay cautious

KSE-100 index showed negative movement to close at 40,620, down 308 points DOD. Volumes stood at 165mn shares versus 190mn shares traded previously. The index is expected to test its recent low of 40,418 where a fall below that will extend the decline towards 39,540. However, any upside will face resistance in the range of 40,750-41,000.

The Stochastic Oscillator has improved, while the RSI has moved down, signalling no clear trading view. Investors are recommended to stay cautious at current levels. The support and resistance are at 40,380 and 40,995 levels, respectively.

OGDC: Recovery trend remains intact

Strategy: ‘Buy on dips’ – targeting Rs76.58 and Rs80.00; stoploss at Rs71.05.

ISL: Upside likely

Strategy: ‘Buy on dips’ – targeting Rs57.88 and Rs58.73; stoploss at Rs53.00.