JS Securities Limited – Pakistan Market: Technical Outlook (September 30, 2021)
Karachi, September 30, 2021 (PPI-OT): KSE-100; Recovery view remains intact
The KSE-100 index posted a loss of 908 points to close at 44,367. Volumes stood at 469mn shares versus 365mn shares traded previously. The index is expected to re-test support at 43,975 (yesterday’s low) where a fall below the said level will target 43,630. Any upside will face resistance in the range of 44,560-45,150. The Stochastic Oscillator has improved and a bullish divergence has been created on the RSI, keeping the recovery view intact. Investors are recommended to wait for dips. The support and resistance are at 43,780 and 45,148, respectively.
MLCF: Engulfing Bear in a downtrend – sign of reversal
Strategy: ‘Buy on dips’ – targeting Rs37.50 and Rs39.65; stoploss at Rs32.60.
ISL: Bullish divergence on RSI
Strategy: ‘Buy on dips’ – targeting Rs82.70; stoploss at Rs74.00.