Karachi, February 20, 2020 (PPI-OT): KSE-100; Moving averages to restrict upside
The KSE-100 index posted a gain of 399 points to close at 40,575. Volumes stood at 143mn shares versus 92mn shares traded previously. The index is likely to revisit yesterday’s high of 40,644 where a break above will target the 50-DMA at 41,440. However, any downside will find support in the range of 40,190-40,390 where a fall below will target 38,003. The RSI has improved, while the Stochastic Oscillator is heading down, signalling no clear trading view. Investors are recommended to stay sellers below the 50-DMA. The support and resistance are at 40,390 and 40,760, respectively.
NCL: Downside likely
Strategy: ‘Sell on Strength’ – targeting Rs37.33; stoploss at Rs45.31.
PSO: Downside target remains intact
Strategy: ‘Sell on Strength’ – targeting Rs171.73; stoploss at Rs184.60.