Karachi, May 19, 2022 (PPI-OT): KSE-100; Recovery to continue

KSE-100 index, after making a low of 42,510, rebounded to close at 43,027, gaining 301 points DoD. Volumes stood at 279mn shares versus 198mn shares traded previously. The index is expected to revisit yesterday’s high of 43,161 where a break above that will target 43,500 to 43,650 range, which may rise to 44,067 level. However, any downside will find support in the range of 42,640-42,900. The RSI and the Stochastic Oscillator are heading up, supporting a recovery view. JS Securities Limited recommends investors to view any downside as an opportunity to ‘Buy’, keeping stoploss below 42,510. The support and resistance are at 42,637 and 43,289, respectively.

HCAR: Buy signal generated

Strategy: ‘Buy on dips’ – targeting Rs191.61 and Rs194.08; stoploss at Rs168.05.

MLCF: Engulfing Bull

Strategy: ‘Buy on dips’ – targeting Rs33.58; stoploss at Rs27.70.