Karachi, September 23, 2021 (PPI-OT): KSE-100 dropped below the 200-DMA; stay cautious

The KSE-100 index closed the session lower at 45,597, down 412 points. Volumes stood at 584mn shares versus 326mn shares traded previously. The index has dropped below the 200-DMA that will now restrict upside at 45,933. Meanwhile, a fall below 44,788 (yesterday’s low) will extend the decline towards 44,567. The RSI and the MACD are heading down, supporting a negative view. Meanwhile, a short term pullback inside the band cannot be ruled out as the index is trading below the lower Bollinger Band. Investors are recommended to ‘Sell’ on the higher side, with risk defined above the 200-DMA. The support and resistance are at 44,913 and 46,157, respectively.

ISL: A hammer – Bullish signal

Strategy: ‘Buy on dips’ – targeting Rs86.35 and Rs92.80; stoploss at Rs79.97.

HCAR: Bullish divergence on RSI

Strategy: ‘Buy on dips’ – targeting Rs319.40; stoploss at Rs263.00.