Karachi, September 27, 2022 (PPI-OT): KSE-100; A short term recovery to continue

KSE-100 index ended the session higher at 41,152, up 531 points. Volumes improved to 213mn shares from 165mn shares traded previously. If the gain continues, the initial target will be at 41,365 which could later extend to 41,588 level. However, any downside will find support in the range of 40,990-40,780 where a fall below that will resume the downtrend with 40,418 and 39,540 in sight. The RSI and the Stochastic Oscillator have generated a Buy signal, supporting a recovery view. Investors are recommended to ‘Buy on dips’, keeping stop-loss below 40,620. The support and resistance are at 40,782 and 41,359 levels, respectively.

OGDC: Recovery trend remains intact

Strategy: ‘Buy on dips’ – targeting Rs76.58 and Rs80.37; stoploss at Rs71.05.

PSO: Recovery expected

Strategy: ‘Buy on dips’ – targeting Rs173.21; stoploss at Rs159.87.