Karachi, May 17, 2019 (PPI-OT): KSE-100; Recovery trend remains intact
The KSE-100 index ended the session lower at 33,971, down 321 points. Volumes stood at 109mn shares versus 111mn shares traded previously. The index is likely to test support at 33,575 (yesterday’s low) where a fall below will cause the downtrend to resume with 33,033 and 31,838 in sight. However, any upside will face resistance at 34,416 where a break above will extend the gain towards 35,123. An Engulfing Bear has occurred which in a downtrend indicates a bullish reversal. Moreover, the Stochastic Oscillator has generated a Buy signal, supporting a recovery view. We recommend investors to ‘Buy’ for short term trading, with risk defined below 33,575. The support and resistance are at 33,500 and 34,449, respectively.
POL: Upside likely
Strategy: ‘Buy on dips’ – targeting Rs425.44 and Rs434.91; stoploss at Rs398.10.
NCL: Recovery target remains intact
Strategy: ‘Buy on dips’ – targeting Rs44.88 and Rs47.48; stoploss at Rs39.50.