Karachi, February 19, 2020 (PPI-OT): KSE-100; Consolidation to continue
Range bound activity continued for the KSE-100 index as it closed at 40,175, down 101 points. Volumes stood at 92mn shares versus 100mn shares traded previously. The index is expected to consolidate at current levels. Meanwhile, a fall below 40,066 (yesterday’s low) will extend the decline towards 38,003. However, a break above 40,601 will lead to further gain towards 41,437. The RSI and the MACD are moving down, supporting a bearish view. JS Securities Limited recommends investors to ‘Sell on Strength’, with risk defined above 40,601. The support and resistance are at 39,862 and 40,491, respectively.
NML: Downside likely
Strategy: ‘Sell on Strength’ – targeting Rs95.52; stoploss at Rs108.08.
PSO: Slide to continue
Strategy: ‘Sell on Strength’ – targeting Rs171.82; stoploss at Rs193.69.