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JS Securities Limited – Pakistan Market: Technical Outlook (January 12, 2023)

Karachi, January 12, 2023 (PPI-OT): KSE-100; Consolidation to continue

KSE-100 index witnessed a volatile session to close at 40,758 level, down 43 points DoD. Volumes stood at 189mn shares versus 214mn shares traded previously. The index is consolidating below the 30-DMA that is currently at 40,839. We believe, any upside break above the 30-DMA will target 41,535 (50-DMA). However, any downside will find support in the range of 40,500-40,600 where a drop below these levels will initiate a corrective trend with 40,307 and 39,819 in sight. The indicators are mixed, signalling no clear trading view. We recommend investors to stay cautious on the higher side and wait for dips. The support and resistance are at 40,574 and 40,965 points, respectively.

ENGRO: Engulfing Bear

Strategy: ‘Sell on Strength’ – targeting Rs274.81 and Rs266.67; stoploss at Rs285.00.

MLCF: Recovery target remains intact

Strategy: ‘Buy on dips’ – targeting Rs22.51 and Rs24.39; stoploss at Rs20.40.