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JS Securities Limited – Pakistan Market: Technical Outlook

Karachi, January 04, 2018 (PPI-OT): A Doji Star formation; stay cautious

The KSE-100 index witnessed a volatile session to close at 41,544, up 57 points. Volumes stood at 234mn shares versus 229mn shares traded previously. A Doji Star formation has occurred in an uptrend, which indicates a bearish reversal, however, a confirmation is required. Meanwhile, a break above 41,820 (yesterday’s high) will continue the uptrend with 42,526 as the next target. However, any downside will find support at yesterday’s low of 41,289; where a fall below will initiate the corrective trend. The indicators are mixed, signalling no clear trading view. JS Securities Limited recommends investors to stay cautious on the higher side and wait for dips. The support and resistance are at 41,229 and 41,862, respectively.

MCB – Upside target remains intact

Strategy: ‘Buy on dips’ – targeting Rs223.20 and Rs228.27; stoploss at Rs212.56.

FFBL – Trading above short and medium term moving averages

Strategy: ‘Buy on dips’ – targeting Rs38.06 and Rs39.14; stoploss at Rs34.27.