Karachi, May 19, 2023 (PPI-OT): KSE-100 near its 200-DMA support; Pullback likely

KSE-100 index extended the decline to close at 41,442, down 392 points. Volumes stood at 101mn shares versus 125mn shares traded previously. The index is moving towards its 200-DMA support that is currently at 41,352 and we may expect a pullback from the said level with the nearest resistance falling in the range of 41,600-41,800 levels. However, any fall below the 200-DMA will continue the corrective trend with a downside target of 40,950 level. Investors are recommended to view any downside as an opportunity to 'Buy', with risk defined below the 200-DMA. The support and resistance are at 41,248 and 41,800 points, respectively.

ISL: Limited downside risk

Strategy: 'Buy on dips' - targeting Rs44.62 and Rs46.70; stoploss at Rs42.70.

PPL: Bullish Divergence

Strategy: 'Buy on dips' - targeting Rs61.23 and Rs62.73; stoploss at Rs58.15.