Karachi, September 16, 2022 (PPI-OT): KSE-100; Engulfing Bear – stay cautious

KSE-100 index failed to sustain its intraday high of 42,312 and slid to close at 41,772, down 240 points DoD. Volumes stood high at 260mn shares versus 157mn shares traded previously. An Engulfing Bear has occurred which indicates a negative trend ahead. Moreover, the index has dropped below the 50-DMA supporting the above view. However, the downside seems to be limited at 41,400, while the upside resistance stands in the range of 41,930-42,150 levels. A cautious stance is required at current levels. The support and resistance are at 41,560 and 42,148 levels, respectively.

HCAR: Limited downside risk

Strategy: ‘Buy on dips’ – targeting Rs186.16 and Rs193.70; stoploss at Rs173.46.

MLCF: Upside likely

Strategy: ‘Buy on dips’ – targeting Rs29.80 and Rs31.10; stoploss at Rs27.09.