Karachi, November 08, 2019 (PPI-OT): KSE-100; Consolidation expected above the 200-DMA
The KSE-100 index witnessed a range bound activity to close at 35,758, up 105 points. Volumes stood at 266mn shares versus 298mn shares traded previously. The index is likely to revisit yesterday’s high of 35,834 where a break above will target 36,434. However, any downside will find support at 35,458, followed by the 200-DMA at 35,320 where a fall below will kick off the corrective trend. The RSI has improved, while the Stochastic Oscillator is heading down, signalling no clear trading view. JS Securities Limited recommends investors to stay cautious on the higher side. The support and resistance are at 35,540 and 35,978, respectively.
SNGP: Corrective trend ahead
Strategy: ‘Sell on Strength’ – targeting Rs69.33 and Rs65.96; stoploss at Rs74.50.
MCB: Upside likely
Strategy: ‘Buy on dips’ – targeting Rs213.00; stoploss at Rs184.60.