JS Securities Limited – Pakistan Market: Technical Outlook (06-09-2019)

Karachi, September 06, 2019 (PPI-OT): KSE-100; Consolidation expected below the 30-DMA

The KSE-100 index, after making a high of 30,744 slid to close at 30,215, down 30 points. Volumes stood at 147mn shares versus 129mn shares traded previously. The index is trading below the 30-DMA that will restrict upside at 30,919. However, a fall below 30,145 (yesterday’s low) will extend the decline towards 28,671. The RSI has shown weakness, while the Stochastic Oscillator is heading up, signaling no clear trading view. We recommend investors to stay sellers below 30-DMA. The support and resistance are at 29,862 and 30,572, respectively.

PPL: Upside to continue

Strategy: ‘Buy on dips’ – targeting Rs120.42; stoploss at Rs110.50.

HBL: Downside target remains intact

Strategy: ‘Sell on Strength’ – targeting Rs102.01; stoploss at Rs113.75.

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