Karachi, 13 Oct 2023: Amidst an optimistic atmosphere, bulls maintained their influence in the market, propelling the KSE-100 index upwards by 297 points to close at 48,772, as per a research report by JS Securities Limited. The report, which analyzes the technical outlook of Pakistan’s market, highlights that despite this favourable performance, there’s an apparent necessity for investors to proceed with caution, particularly as the index is trading above the Upper Bollinger Band. Further potentialities, strategic movements, and specific targets within the stock market have also been outlined, affecting particular entities like HCAR and ENGRO.

The KSE-100 index has displayed a robust performance, with trading volumes registering at 342 million shares, compared to 396 million shares traded in the preceding session. There's an anticipation that the index may revisit its recent high of 48,830, and if it surpasses that, it could aim for 49,344, followed by the 50,178 level. On the contrary, any downturn will likely undergo a trial between 48,470 and 48,660 levels, where a drop below this could spark a corrective trend. Additionally, despite the index trading above the Upper Bollinger Band, the report notes that a short-term pullback within the band might be a possibility. Thus, JS Securities advises investors to maintain a level of caution on the higher side and await potential dips. The identified support and resistance levels for the KSE-100 index stand at 48,477 and 48,948, respectively.

In terms of specific equities, the report gives a 'Buy on dips' strategy for HCAR, with target prices of Rs149.00 and Rs161.03 and a stop-loss at Rs139.09, indicating a movement towards the recent high. ENGRO is also suggested to continue its upside, with the recommendation again being to 'Buy on dips', targeting Rs272.02 and Rs275.00, with a stop-loss firmly placed at Rs260.21. These strategic recommendations offer specific approaches for investors dealing with these securities, aligning with the overall cautious yet opportunistic outlook presented for the broader market.