JS Securities Limited – Pakistan Market: Technical Outlook

Karachi, April 19, 2019 (PPI-OT): KSE-100; Consolidation expected

After making a low of 36,419, the KSE-100 index recovered to close at 36,812, up 59 points. Volumes stood high at 216mn shares versus 173mn shares traded previously. Despite a positive closing, the index has formed a lower high and lower low indicating that the trend is still weak. Meanwhile, a break above 36,920 (yesterday’s high) will kick off the recovery trend. However, a fall below yesterday’s low will continue the downtrend with 35,702. The Stochastic Oscillator and the MACD have moved down, supporting a negative view. JS Securities Limited recommends investors to ‘Sell’ on the higher side, with risk defined above 36,920. The support and resistance are at 36,514 and 37,112, respectively.

MCB: Slide to continue

Strategy: ‘Sell on Strength’ – targeting Rs175.69; stoploss at Rs189.38.

SNGP: Short term upside likely

Strategy: ‘Buy on dips’ – targeting Rs84.21; stoploss at Rs71.83.

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