Karachi, July 12, 2018 (PPI-OT):KSE-100 – Recovery to continue; ‘Buy’ for short term
The KSE-100 index continued the recovery movement to close at 39,587, up 134 points. Volumes stood at 128mn shares versus 168mn shares traded previously. The index is expected to revisit yesterday’s high of 40,062; where a break above will extend the gain towards 40,771. However, any downside will find support at 39,209 (yesterday’s low); where a fall below will cause the downtrend to resume. The RSI has improved and the Stochastic Oscillator has generated a Buy signal, supporting a recovery view. Investors are recommended to view any downside as an opportunity to ‘Buy’, with risk defined below 39,209. The support and resistance are at 39,085 and 40,095, respectively.
OGDC – Recovery to continue
Strategy: ‘Buy on dips’ – targeting Rs157.62; stoploss at Rs148.16.
FFC – Limited upside
Strategy: ‘Sell on Strength’ – targeting Rs88.59; stoploss at Rs97.67.