Karachi: The KSE-100 index is poised for potential consolidation as it remains buoyant above its 50-day moving average, indicating a stable outlook for investors. Yesterday, the index modestly increased by 15 points, closing at 78,863, with trading volumes reaching 771 million shares, a decrease from the previous session’s 970 million shares.

According to JS Global, the index’s current position above the 50-day moving average (DMA) at 78,765 points acts as a pivotal support level that may limit any downward movement. Additionally, if the index surpasses the recent high of 79,154 points, it could see further gains towards 79,442 and potentially up to 80,031 points. Both the Relative Strength Index (RSI) and the Stochastic Oscillator are trending upwards, supporting a bullish perspective for the market. Investment advice remains consistent with a ‘Buy on dips’ strategy, where the 30-DMA at 78,164 serves as a critical risk marker.

In individual stock strategies, Oil and Gas Development Company (OGDC) and Engro Corporation (ENGRO) are both positioned for recovery. OGDC, with a suggested buying strategy on dips, targets a price of Rs141.11 and Rs146.12, maintaining a stop-loss at Rs133.15. Similarly, ENGRO, following the same strategic approach, aims for target prices of Rs328.17 and Rs337.70 with a stop-loss set at Rs317.00.

These investment strategies highlight an anticipated positive trajectory for the KSE-100 and select stocks, reflecting a cautiously optimistic outlook for the Pakistani market amidst fluctuating trading volumes.