Karachi, November 12, 2021 (PPI-OT): KSE-100; An Engulfing Bear – stay cautious

The KSE-100 index posted a loss of 282 points to close at 46,348. Volumes stood low at 270mn shares versus 320mn shares traded previously. An Engulfing Bear has occurred which indicates a negative trend ahead, the RSI and the MACD also have moved down, suggesting the same. However, the 200-DMA will provide support at 46,258, followed by the 50-DMA at 45,808. In the meantime, any upside will face resistance in the range of 46,500-46,700. We recommend investors to ‘Sell’ below the 200-DMA. The support and resistance are at 46,167 and 46,687, respectively.

UBL: Correction to continue

Strategy: ‘Sell on Strength’ – targeting Rs131.92 and Rs126.69; stoploss at Rs136.90.

PSO: Slide to continue

Strategy: ‘Sell on Strength’ – targeting Rs182.00 and Rs178.00; stoploss at Rs190.48.