Karachi, December 06, 2017 (PPI-OT): Downside likely; ‘Sell on Strength’ maintained
The KSE-100 index posted a loss of 104 points to close at 39,945. Volumes stood at 147mn shares versus 97mn shares traded previously. The current formation is an Engulfing Bear, which indicates potential for further downside. The downside target remains intact at 38,681, with a chance of later extending towards 38,139. However, any upside will find resistance at yesterday’s high of 40,085, followed by the 30-DMA at 40,658. The indicators are mixed, signalling no clear trading view. JS Securities Limited recommends investors to ‘Sell’ on the higher side, keeping stoploss above 40,085. The support and resistance are at 39,844 and 40,047, respectively.
NCL – An Engulfing Bull
Strategy: ‘Buy on dips’ – targeting Rs49.20 and Rs52.86; stoploss at Rs45.00.
NML – Upside likely
Strategy: ‘Buy on dips’ – targeting Rs149.00 and Rs155.85; stoploss at Rs140.99.