Karachi, July 10, 2018 (PPI-OT):KSE-100; Slide to continue with 38,583 in sight
The KSE-100 index fell sharply to close at 39,288, down 996 points. Volumes stood at 124mn shares versus 104mn shares traded previously. If the decline continues, the initial target will be at 38,583, with a chance of further extending towards 37,485. However, any upward recovery may face resistance in the range of 39,575-39,865; where a break above will initiate the upward correction. The RSI and the MACD are heading down, supporting a bearish view. Investors are recommended to view any upside as an opportunity to ‘Sell’, with risk defined above 39,865. The support and resistance are at 38,720 and 39,865, respectively.
FFC – Bearish crossover expected
Strategy: ‘Sell on Strength’ – targeting Rs88.45; stoploss at Rs97.91.
MCB – Downside likely
Strategy: ‘Sell on Strength’ – targeting Rs181.73; stoploss at Rs198.00.