Karachi, January 01, 2019 (PPI-OT): Doji Star formation; look for reversal
Downward movement continued for the KSE-100 index as it lost 100 points to close at 37,067. Volumes stood at 226mn shares versus 174mn shares traded previously. A Doji Star has occurred, which in a downtrend indicates a bullish reversal, however, a confirmation is required. Meanwhile, a fall below yesterday’s low will continue the downtrend with 36,274 in sight. However, any upside will find resistance in the range of 37,200-37,410; where a break above will confirm the bullish view. Meanwhile, the RSI and the Stochastic Oscillator are oversold, hinting a short term recovery. JS Securities Limited recommends investors to stop selling above 37,206. The support and resistance are at 36,831 and 37,304, respectively.
POL: Recovery expected
Strategy: ‘Buy on dips’ – targeting Rs442.67 and Rs465.67; stoploss at Rs406.00.
UBL: Slide to continue
Strategy: ‘Sell on Strength’ – targeting Rs117.19 and Rs109.20; stoploss at Rs129.00.