Karachi, September 27, 2021 (PPI-OT): KSE-100; Pullback inside the band likely

Another negative session for the KSE-100 index as it closed at 45,074, down 223 points. Volumes stood at 370mn shares versus 444mn shares traded previously. The index is expected to re-test resistance at Friday’s high of 45,424 where a break above that level will extend the gain towards 45,975 (200-DMA). However, a drop below 44,861 (Friday’s low) will continue the downtrend with 44,567 and 43,630 in sight. A short term pullback inside the band cannot be ruled out as the index is trading below the Lower Bollinger Band. JS Securities Limited recommends investors to ‘Buy’ for trading gains, with risk defined below 44,788. The support and resistance are at 44,815 and 45,378, respectively.

OGDC: Recovery expected

Strategy: ‘Buy on dips’ – targeting Rs86.81 and Rs90.40; stoploss at Rs82.95.

ENGRO: RSI generated a buy signal

Strategy: ‘Buy on dips’ – targeting Rs289.00; stoploss at Rs272.11.