Karachi, September 28, 2021 (PPI-OT): KSE-100; Recovery expected

After making a low of 44,342, the KSE-100 index recovered to close at 44,818, a decline of 256 points. Volumes stood at 301mn shares versus 370mn shares traded previously. The index is expected to revisit yesterday’s high of 45,236 where a break above that level will initiate an upward correction with 45,991 in sight. However, any downside will find support at the 44,342 level whereas a fall below the said level will target 43,630. The RSI is oversold and the index is trading below the lower Bollinger Band indicating a short term recovery trend ahead. We recommend investors to ‘Buy’ for trading gains, with risk defined below 44,342. The support and resistance are at 44,360 and 45,255, respectively.

OGDC: Recovery to continue

Strategy: ‘Buy on dips’ – targeting Rs86.81 and Rs90.40; stoploss at Rs83.90.

ENGRO: Upside likely

Strategy: ‘Buy on dips’ – targeting Rs288.78; stoploss at Rs275.51.