JS Securities Limited – Pakistan Market: Technical Outlook (24 May 2023)

Karachi, May 24, 2023 (PPI-OT): KSE-100 likely to test support at 30-DMA; cautious

KSE-100 index extended the decline to close at 41,099, down 96 points DoD. Volumes stood at 91mn shares versus 98mn shares traded previously. The index is expected to test support at the 30-DMA that is currently at 41,092, followed by 40,978 (50-DMA).

Though, any fall below the said levels will initiate a bearish trend. Meanwhile, any upside will face resistance at the 200-DMA that is standing at 41,365. The RSI and the MACD are moving down, warranting a cautious stance. Investors are recommended to stay cautious on the higher side and wait for dips. The support and resistance are at 41,033 and 41,230 points, respectively.

ENGRO: A steady uptrend to continue

Strategy: 'Buy on dips' - targeting Rs276.61 and Rs281.25; stoploss at Rs270.60.

HCAR: Recovery expected

Strategy: 'Buy on dips' - targeting Rs109.17 and Rs111.91; stoploss at Rs103.01.