JS Securities Limited – Pakistan Market: Technical Outlook (September 21, 2022)
Karachi, September 21, 2022 (PPI-OT): KSE-100; Formation suggests further downside
Bears continued to dominate the session as KSE-100 index lost 300 points DOD to close at 41,221. Volumes stood at 157mn shares versus 148mn shares traded previously. The index is likely to revisit yesterday’s low of 41,079 where a fall below that will target 40,670 which could later extend to 39,540. However, any upside will face resistance in the range of 41,300-41,550 where a break above will target the 50-DMA at 41,785. The RSI and the MACD are moving down, supporting a bearish view. We recommend investors to ‘Sell on Strength’, keeping stop-loss above the 50-DMA. The support and resistance are at 40,985 and 41,549 levels, respectively.
SNGP: 200-DMA to restrict upside
Strategy: ‘Sell on Strength’ – targeting Rs30.11; stoploss at Rs33.10.
ENGRO: Recovery trend remains intact
Strategy: ‘Buy on dips’ – targeting Rs240.31 and Rs241.68; stoploss at Rs231.50.