Karachi, April 07, 2020 (PPI-OT): An Engulfing Bear; stay cautious
The KSE-100 index closed the session lower at 30,579, down 1,043 points. Volumes stood low at 233mn shares versus 252mn shares traded previously. An Engulfing Bear has occurred which indicates a negative trend ahead, however, a confirmation is required. The Stochastic Oscillator has shown weakness, while the MACD is heading up, signalling no clear trading view. A fall below 30,503 will confirm the bearish view with 30,056 and 28,907 in sight. However, any upside will face resistance in the range of 30,990-31,215. JS Securities Limited recommends investors to ‘Sell’ below 30,503. The support and resistance are at 29,959 and 31,212, respectively.
MCB: Downside likely
Strategy: ‘Sell on Strength’ – targeting Rs130.20; stoploss at Rs154.95.
MLCF: Slide to continue
Strategy: ‘Sell on Strength’ – targeting Rs20.89; stoploss at Rs23.78.