Karachi, October 13, 2021 (PPI-OT): KSE-100; Indicators suggesting recovery trend ahead

The KSE-100 index after making a low of 43,149 recovered to close at 43,883, up 54 points. Volumes stood high at 405mn shares versus 227mn shares traded previously. The index is likely to revisit yesterday’s high of 44,051 where a break above that level will kick off the recovery trend with 45,058 in sight. However, any downside will find support in the range of 43,335-43,700. Meanwhile, the Stochastic Oscillator has taken an upturn and the RSI has also generated a Buy signal, suggesting a recovery trend ahead. JS Securities Limited recommends investors to ‘Buy on dips’, with risk defined below 43,149. The support and resistance are at 43,338 and 44,240, respectively.

OGDC: Upside likely

Strategy: ‘Buy on dips’ – targeting Rs86.04 and Rs88.53; stoploss at Rs80.83.

DGKC: RSI generated a Buy signal

Strategy: ‘Buy on dips’ – targeting Rs89.63; stoploss at Rs76.50.