Karachi, October 15, 2021 (PPI-OT): KSE-100; An Engulfing Bull – Recovery expected
The KSE-100 index bounced back sharply to close at 44,334 (+1,112 points). Volumes stood at 389mn shares versus 355mn shares traded previously. An Engulfing Bull has occurred which indicates a positive trend ahead. Moreover, the Stochastic Oscillator and the RSI have generated a Buy signal, supporting the above view. A break above the level of 44,432 will extend the gain towards 44,994, followed 46,105 (200-DMA). However, any downside will find support in the range of 43,440-43,940. JS Securities Limited recommends investors to view any downside as an opportunity to ‘Buy’, keeping stoploss below 43,440. The support and resistance are at 43,443 and 44,828, respectively.
OGDC: Upside target remains intact
Strategy: ‘Buy on dips’ – targeting Rs85.32 and Rs88.04; stoploss at Rs80.23.
PSO: Engulfing Bull
Strategy: ‘Buy on dips’ – targeting Rs193.45 and Rs203.00; stoploss at Rs179.02.