Karachi, April 09, 2020 (PPI-OT): KSE-100 may resume the downtrend; stay cautious
The KSE-100 index closed the session lower at 30,971, down 260 points. Volumes stood at 181mn shares versus 173mn shares traded previously. The index is likely to consolidate at current levels. Meanwhile, a fall below 30,775 will cause the downtrend to resume with 30,056 in sight. However, any upside will face resistance at 31,239 where a break above will lead to further gain towards 33,467. The RSI has shown weakness and the Stochastic Oscillator has generated a Sell signal, suggesting a negative trend ahead. JS Securities Limited recommends investors to ‘Sell’ below 30,775. The support and resistance are at 30,731 and 31,213, respectively.
NBP: Slide to continue
Strategy: ‘Sell on Strength’ – targeting Rs24.59; stoploss at Rs28.00.
OGDC: Upside to continue
Strategy: ‘Buy on dips’ – targeting Rs98.48; stoploss at Rs92.56.