Karachi, September 13, 2022 (PPI-OT): KSE-100 likely to test support at 50-DMA; stay cautious

Range bound activity continued for the KSE-100 index as it closed at 41,862, down 86 points DoD. Volumes stood at 161mn shares versus 147mn shares traded previously. The index is expected to test support at the 50-DMA standing at 41,756 where a fall below that will lead to further decline towards 41,400. However, any upside will face resistance in the range of 41,930-42,140, followed by the 30-DMA at 42,273. The indicators are mixed, signalling no clear trading view. Investors are recommended to stay cautious at current levels. The support and resistance are at 41,738 and 42,062, respectively.

MLCF: Upside target remains intact

Strategy: ‘Buy on dips’ – targeting Rs31.19; stoploss at Rs27.01.

HCAR: Limited downside risk

Strategy: ‘Buy on dips’ – targeting Rs186.16 and Rs198.00; stoploss at Rs173.50.