Karachi, September 21, 2021 (PPI-OT): KSE-100 index expected to target the 200-DMA

Following its previous negative session, the KSE-100 index extended the decline to close at 46,528, down 108 points. Volumes stood low at 195mn shares versus 387mn shares traded previously. If the decline continues, the likely target will be at the 200-DMA that stands at 45,882. However, any upside will face resistance in the range of 46,690-46,955, followed by the 30-DMA at 47,144. The RSI and the MACD have moved down, supporting a negative view. JS Securities Limited recommends investors to ‘Sell on Strength’, keeping stoploss above the 30-DMA. The support and resistance are at 46,265 and 46,741, respectively.

ENGRO: Bullish Divergence on RSI

Strategy: ‘Buy on dips’ – targeting Rs289 and Rs293.37; stoploss at Rs275.10.

HCAR: Recovery expected

Strategy: ‘Buy on dips’ – targeting Rs319.54; stoploss at Rs277.00.