Karachi, March 20, 2020 (PPI-OT): KSE-100; Short term recovery is due
The KSE-100 index after making a low of 28,452, recovered to close at 30,130, down 286 points. Volumes improved to 308mn shares from 187mn shares traded a day earlier. The index is likely to revisit yesterday’s high of 30,515 where a break above will kick off the upward correction. However, any downside will find support in the range of 28,900-29,700. The RSI and the Stochastic Oscillator are oversold, hinting a short term recovery is due. Moreover, the index is trading below the Lower Bollinger Band, supporting the above view. JS Securities Limited recommends investors to stop selling above 30,515. The support and resistance are at 28,902 and 31,410, respectively.
PSO: Downside target remains intact
Strategy: ‘Sell on Strength’ – targeting Rs110.02; stoploss at Rs137.90.
FFC: Recovery expected
Strategy: ‘Buy on dips’ – targeting Rs97.75; stoploss at Rs85.15.