Karachi, July 31, 2017 (PPI-OT): Consolidation likely; ‘Sell on Strength’ maintained
The KSE-100 index after making a low of 44,236, recovered to close at 45,912, up 6 points. Volumes improved to 328mn shares from 159mn shares traded previously. The index is expected to re-test resistance at Friday’s high of 46,061; where a break above will open the way towards 47,159 (200-DMA). However, any downside will find support in the range of 44,800-45,405. The indicators are mixed, signalling no clear trading view. JS Securities Limited recommends investors to ‘Sell on Strength’, keeping stoploss above 46,061. The support and resistance are at 44,815 and 47,036 respectively.
HBL – Downside likely
Strategy: ‘Sell on Strength’ – targeting Rs233.00; stoploss at Rs253.61.
POL – Trading above short, medium and long term moving averages.
Strategy: ‘Buy on dips’ – targeting Rs494.12 and Rs540.00; stoploss at Rs473.79.