Karachi, March 22, 2023 (PPI-OT): KSE-100 likely to re-test support at the 50-DMA

KSE-100 index witnessed another negative session to close at 40,878, down 40 points. Volumes stood low at 143mn shares versus 195mn shares traded previously. The index is expected to re-test support at the 50-DMA that currently stands at 40,758 points where a fall below that will expose further weakness towards 40,030. However, any upside will face resistance at 41,275 (30-DMA), followed by the 200-DMA at 41,440 points. The RSI and the MACD have continued to decline, suggesting a negative trend ahead. We recommend investors to ‘Sell’ below the 50-DMA. The support and resistance are at 40,720 and 41,013 points, respectively.

ISL: Corrective trend remains intact

Strategy: ‘Sell on Strength’ – targeting Rs43.08 and Rs41.95; stoploss at Rs45.98.

PPL: Recovery expected

Strategy: ‘Buy on dips’ – targeting Rs71.21 and Rs73.36; stoploss at Rs65.90.