Karachi, September 03, 2021 (PPI-OT): KSE-100 to re-test its recent support; stay cautious

The KSE-100 index witnessed a sharp decline to close at 46,903, a loss of 510 points. Volumes stood at 544mn shares versus 537mn shares traded previously. The index is expected to re-test support at its recent low of 46,672 where a drop below this level will target the 200-DMA which is currently at 45,504. The RSI and the MACD are also heading down, any upside will continue to face resistance in the range of 47,450-47,525. Investors are recommended to ‘Sell on Strength’, with risk defined above the 50-DMA. The support and resistance are at 46,689 and 47,303, respectively.

HBL: Downside likely

Strategy: ‘Sell on Strength’ – targeting Rs112.11; stoploss at Rs125.50.

ISL: Slide to continue

Strategy: ‘Sell on Strength’ – targeting Rs93.73; stoploss at Rs99.95.