JS Securities Limited – Pakistan Market: Technical Outlook

Karachi, January 11, 2018 (PPI-OT): KSE-100 index targeting the 200-DMA at 44,462

The KSE-100 index showed positive movement to close at 43,631, up 816 points. Volumes improved to 328mn shares as compared to 225mn shares traded previously. The upside target for the index remains intact at 44,006, where a break above will take the index towards the 200-DMA standing at 44,462. However, any downside will find support in the range of 43,080-43,370; where a drop below will kick off the downtrend. Meanwhile, the RSI and the MACD have moved up, supporting a positive view. Investors are recommended to ‘Buy’ at lower levels, with risk defined below 43,080. The support and resistance are at 43,366 and 43,898, respectively.

MCB – Bullish crossover likely

Strategy: ‘Buy on dips’ – targeting Rs228.27 and Rs236.48; stoploss at Rs218.03.

ENGRO – Upside likely

Strategy: ‘Buy on dips’ – targeting Rs316.32; stoploss at Rs288.00.