JS Securities Limited - Pakistan Market: Technical Outlook (October 28, 2022)

FLASHNEWS:

Fertilizer Companies in Pakistan Forecast to See Profit Gains in First Quarter Despite Pricing Hurdles

Karachi Stock Exchange Closes Up 230 Points Driven by Late Gains in Energy Stocks

KSE-100 Shows Bullish Trends But Faces Resistance Ahead

Currency Fluctuations Continue in Pakistan as Exchange Rates Show Slight Increases

KSE-100 Closes Above 70,000; Analysts Urge Caution Amid Overbought Indicators

Karachi Business Leader Criticizes Past Policies for Economic Setbacks, Urges Agricultural Focus

Bank Al Habib Enhances Mobile and Netbanking Security to Counter Digital Scams

Islamabad Police Introduces ‘Knock the Door’ Campaign to Register Tenants and Workers for Increased Safety

FBR Targets Lahore’s Tax-evading Industrialists and Businessmen

FBR to Suspend SIM Cards of 1.8 Million Tax Non-filers in Compliance Push

Saudi Arabia to Invest $1 Billion in Balochistan’s Reko Diq Mining Project

Karachi’s Electricity Maintains Stability Despite Rainy Conditions

SMEs Identified as Crucial for Pakistan’s Economic Growth Amidst Challenges

IFC Backs PTCL Group’s Acquisition of Telenor Pakistan with Financing

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JS Securities Limited – Pakistan Market: Technical Outlook (October 28, 2022)

October 28, 2022

Karachi, October 28, 2022 (PPI-OT): KSE-100; Consolidation likely below 30-DMA

KSE-100 index after making a low of 41,319, recovered to close at the 41,603 level, up 63 points DoD. Volumes stood at 204mn shares versus 265mn shares traded previously. The index is expected to consolidate below the 30-DMA that is currently at 41,662 where a break above that will target 41,940 (50-DMA). However, any downside will find support in the range of 41,320-41,280 where a break below these levels will lead to further decline towards 40,418 level. The indicators are mixed, signalling no clear trading view. Investors are recommended to stay cautious on the higher side and wait for dips. The support and resistance are at 41,377 and 41,770 levels, respectively.

SNGP: Upside to continue

Strategy: ‘Buy on dips’ – targeting Rs36.20 and Rs38.50; stoploss at Rs34.21.

ENGRO: Corrective trend remains intact

Strategy: ‘Sell on Strength’ – targeting Rs237.70; stoploss at Rs248.50.