Karachi, July 16, 2018 (PPI-OT): KSE-100; Recovery to continue with 40,771 in sight
Recovery movement continued for the KSE-100 index as it gained 396 points to close at 40,271. Volumes stood at 125mn shares versus 109mn shares traded previously. The index is expected to revisit Friday’s high of 40,389; where a break above will open the way towards 40,771, followed by 42,137. However, any downside will find support at 39,852; where a drop below will cause the downtrend to resume. The RSI and the Stochastic Oscillator are heading up, supporting a recovery view. Investors are recommended to view any downside as an opportunity to ‘Buy’, with risk defined below 39,852. The support and resistance are at 40,027 and 40,516, respectively.
NML – Recovery to continue
Strategy: ‘Buy on dips’ – targeting Rs140.33; stoploss at Rs129.00.
MCB – Upside likely
Strategy: ‘Buy on dips’ – targeting Rs210.14; stoploss at Rs201.39.