Karachi, October 11, 2021 (PPI-OT): KSE-100; An Engulfing Bear – look for reversal

The KSE-100 index posted a loss of 109 points to close at the level of 44,477. Volumes stood at 176mn shares versus 296mn shares traded previously. The index is currently trading above its key support level of 43,970 where a fall below this will target the level of 42,700. Any upside will face resistance at Friday’s high of 44,671 and any break above the said level will extend the gain towards 46,100 (200-DMA). Meanwhile, an Engulfing Bear has occurred which in a downtrend indicates a bullish reversal, however, a confirmation is required. JS Securities Limited suggests the investors to stay cautious on the higher side and wait for dips. The support and resistance are at 44,320 and 44,652, respectively.

HBL: RSI generated a Buy signal

Strategy: ‘Buy on dips’ – targeting Rs115.00 and Rs122.00; stoploss at Rs108.50.

ISL: Recovery trend remains intact

Strategy: ‘Buy on dips’ – targeting Rs82.70 and Rs87.07; stoploss at Rs74.00.