Karachi, March 30, 2023 (PPI-OT): KSE-100; A reversal formation

KSE-100 index posted a loss of 202 points to close at the 39,880 level. Volumes stood at 109mn shares versus 87mn shares traded previously. An Engulfing Bear has occurred in a downtrend which indicates a bullish reversal, though requires confirmation. Meanwhile, a fall below 39,845 will invalidate the above formation and the downtrend will continue with 39,496 and 39,166 as the next targets. However, any upside will face resistance in the range of 39,970-40,190 where a break above that will target 40,422 and 40,780 levels. Investors are recommended to ‘Buy’ for trading gains, with risk defined below the 39,845 level. The support and resistance are at 39,768 and 40,088 points, respectively.

OGDC: Slide to continue

Strategy: ‘Sell on Strength’ – targeting Rs83.10 and Rs80.28; stoploss at Rs85.48.

DGKC: Recovery to continue

Strategy: ‘Buy on dips’ – targeting Rs44.11 and Rs45.94; stoploss at Rs42.16.