Karachi, January 18, 2022 (PPI-OT): KSE-100; Corrective trend ahead

KSE-100 index initiated a corrective trend and closed at 45,612, down 151 points. Volumes stood low at 173mn shares versus 240mn shares traded previously. The index is expected to continue with the corrective trend with a likely target range of 45,030-45,090 which can be further extended to the 44,750 level. However, any upside will face resistance in the range of 45,800-46,000. The RSI and the Stochastic Oscillator have also moved down, supporting a corrective view. Investors are recommended to stay cautious on the higher side and wait for dips. The support and resistance are at 45,403 and 45,804, respectively.

PSO: Upside target remains intact

Strategy: ‘Buy on dips’ – targeting Rs198.9; stoploss at Rs183.4.

ENGRO: Limited downside risk

Strategy: ‘Buy on dips’ – targeting Rs274.8 and Rs289.0; stoploss at Rs271.0.