Karachi, September 14, 2018 (PPI-OT): KSE-100; Short term recovery expected
The KSE-100 index posted a gain of 528 points to close at 41,050. Volumes stood at 149mn shares versus 137mn shares traded previously. The current formation is an Engulfing Bull which indicates a recovery trend ahead. Moreover, the RSI and the Stochastic Oscillator have moved up, supporting a recovery view. The upside target has been established at 41,306, followed by the 50-DMA at 41,569. However, a fall below 40,339 (yesterday’s low) will cause the downtrend to resume. JS Securities Limited recommends investors to ‘Buy’ for short term, with risk defined below 40,339. The support and resistance are at 40,651 and 41,453, respectively.
NML – Upside target remains intact
Strategy: ‘Buy on dips’ – targeting Rs148.68; stoploss at Rs138.40.
DGKC – Short term recovery to continue
Strategy: ‘Buy on dips’ – targeting Rs110.85; stoploss at Rs97.20.