Karachi, June 05, 2020 (PPI-OT): KSE-100; Correction to continue
The KSE-100 index posted a loss of 282 points to close at 34,119. Volumes stood at 144mn shares versus 130mn shares traded previously. The index is likely to continue the corrective trend with 33,530 as the downside target. However, any upside will face resistance in the range of 34,205-34,410 where a break above will target 35,772 (200-DMA). The RSI and the MACD have shown weakness, supporting a corrective view. Investors are recommended to ‘Sell on Strength’, with risk defined above 34,410. The support and resistance are at 34,000 and 34,239, respectively.
DGKC: Downside likely
Strategy: ‘Sell on Strength’ – targeting Rs75.55; stoploss at Rs82.72.
OGDC: Slide to continue
Strategy: ‘Sell on Strength’ – targeting Rs104.44; stoploss at Rs116.42.