Karachi, October 04, 2022 (PPI-OT): KSE-100; Expected to trade range bound

KSE-100 index extended the gain to close at 41,212, up 83 points. Volumes stood at 185mn shares versus 206mn shares traded previously. The index is expected to re-test resistance at 41,404 (yesterday’s high) where a break above that will target the 50-DMA that is currently at 41,769 level. However, any downside will find support in the range of 41,060-41,090 where a fall below that will expose further weakness towards 40,670. The RSI and the MACD are moving up, supporting a positive view. JS Securities Limited recommends investors to ‘Buy on dips’, with risk defined below 41,090. The support and resistance are at 41,067 and 41,380 levels, respectively.

PSO: Upside likely

Strategy: ‘Buy on dips’ – targeting Rs169.16 and Rs172.90; stoploss at Rs162.60.

ENGRO: Recovery trend intact

Strategy: ‘Buy on dips’ – targeting Rs235.43 and Rs238.35; stoploss at Rs230.20.