Karachi, January 13, 2022 (PPI-OT): KSE-100; A long upper shadow – stay cautious

Volatility continued at PSX with the KSE-100 index gaining 35 points to close at 45,916 level. Volumes stood at 514mn shares versus 339mn shares traded previously. The index is facing resistance at the 200-DMA that is currently at 46,013 where a break above this level will extend the gain towards 47,608 level. However, a fall below 45,872 will initiate the corrective trend with 44,905 as the next target. A long upper shadow has occurred in an uptrend which indicates a bearish reversal, however, a confirmation is required. JS Securities Limited recommends investors to stay cautious on the higher side and wait for dips. The support and resistance are at 45,785 and 46,134, respectively.

PSO: Upside target remains intact

Strategy: ‘Buy on dips’ – targeting Rs198.9; stoploss at Rs185.6.

BOP: Upside likely

Strategy: ‘Buy on dips’ – targeting Rs9.2 and Rs9.7; stoploss at Rs8.5.