Karachi, January 11, 2022 (PPI-OT): KSE-100; Resistance test at the 200-DMA

Bullish momentum continued as the KSE-100 index gained 542 points to close at 45,888 level. Volumes stood at 357mn shares versus 242mn shares traded previously. The index is expected to test resistance at the 200-DMA that is currently at 46,002 where a break above this level will extend the gain towards 47,608. However, any downside will find support in the range of 45,400-45,700, followed by the 50-DMA at 44,953. The RSI and the MACD have continued to rise, supporting a positive view. JS Securities Limited recommends investors to view any downside as an opportunity to ‘Buy’, with risk defined below the 50-DMA. The support and resistance are at 45,407 and 46,168, respectively.

PSO: Upside target remains intact

Strategy: ‘Buy on dips’ – targeting Rs198.9; stoploss at Rs183.6.

ISL: A steady uptrend to continue

Strategy: ‘Buy on dips’ – targeting Rs76.5 and Rs83.8; stoploss at Rs71.7.