JS Securities Limited – Pakistan Market: Technical Outlook

Karachi, January 05, 2018 (PPI-OT):KSE-100; Upside likely with 42,526 in sight

The KSE-100 index failed to confirm its previous bearish formation (Doji Star) and closed at 41,909, up 364 points. Volumes stood at 222mn shares versus 234mn shares traded previously. The index is expected to revisit yesterday’s high of 41,996; where a break above will extend the gain towards 42,526. However, any downside will find support at yesterday’s low of 41,544; where a drop below will kick off the corrective trend. The RSI and the MACD are moving up, supporting a positive view. Investors are recommended to ‘Buy’ at lower levels, with risk defined below 41,544. The support and resistance are at 41,719 and 42,099, respectively.

NBP – Bullish crossover expected

Strategy: ‘Buy on dips’ – targeting Rs57.17; stoploss at Rs48.20.

FFC – Upside likely

Strategy: ‘Buy on dips’ – targeting Rs85.59; stoploss at Rs79.93.