Karachi, November 14, 2019 (PPI-OT): Indicators overbought; stay cautious
The KSE-100 index ended the session higher at 37,167, up 401 points. Volumes stood at 275mn shares versus 292mn shares traded previously. The index is likely to revisit yesterday’s high of 37,289 where a break above will deliver gains towards 37,507. However, any downside will find support in the range of 36,730-36,980 where a fall below will kick off the corrective trend with 35,267 as the downside target. The RSI and the Stochastic Oscillator are overbought, warranting a cautious stance. JS Securities Limited recommends investors to stay cautious on the higher side. The support and resistance are at 36,731 and 37,608, respectively.
SNGP: Downside target remains intact
Strategy: ‘Sell on Strength’ – targeting Rs69.11 and Rs67.61; stoploss at Rs75.15.
NCL: Restricted downside
Strategy: ‘Buy on dips’ – targeting Rs40.74; stoploss at Rs36.24.