Karachi, July 14, 2021 (PPI-OT): KSE-100; Consolidation to continue

The KSE-100 index witnessed another range bound session to close at 47,480, up 33 points. Volumes stood at 497mn shares as compared to 475mn shares traded previously. The index is expected to trade between the 50-DMA and the 30-DMA that are standing at 47,057 and 47,882, respectively. A break above or below is needed for a directional move. The RSI has improved, while the MACD is heading down, supporting a neutral view. We recommend investors to view any downside as an opportunity to ‘Buy’, with risk defined below the 50-DMA. The support and resistance are at 47,418 and 47,564, respectively.

ISL: Downside target remains intact

Strategy: ‘Sell on Strength’ – targeting Rs85.59; stop loss at Rs90.50.

ENGRO: Upside likely

Strategy: ‘Buy on dips’ – targeting Rs303.68; stop loss at Rs295.02.