Karachi, December 04, 2019 (PPI-OT): KSE-100; Correction expected – stay cautious
The KSE-100 index, after making a high of 40,444, slid to close at 39,789, down 335 points. Volumes stood at 449mn shares versus 557mn shares traded previously. The index is likely to revisit yesterday’s low of 39,726 where a fall below will kick off the corrective trend with 39,111 in sight. However, a break above 40,444 will continue the uptrend with 40,869 and 41,617 as the upside targets. Meanwhile, the RSI and the Stochastic Oscillator have shown weakness, suggesting a corrective trend ahead. JS Securities Limited recommends investors to stay cautious at current levels. The support and resistance are at 39,402 and 40,179, respectively.
MCB: Upside target remains intact
Strategy: ‘Buy on dips’ – targeting Rs219.80 and Rs233.13; stoploss at Rs211.01.
LUCK: Downside likely
Strategy: ‘Sell on Strength’ – targeting Rs391.49; stoploss at Rs431.50.