Karachi, December 11, 2017 (PPI-OT): KSE-100 – Downtrend remains intact; ‘Sell on Strength’
The KSE-100 index witnessed adjustment to its previous declines to close at 39,080, up 295 points. Volumes stood at 150mn shares as compared to 163mn shares traded previously. Despite a positive closing, the index has formed a lower high and lower low that indicates that the trend is still weak. The downside target remains intact at 38,139, however, any upside will revisit Friday’s high of 39,340; where a break above will kick off the upward correction with 39,482 and 40,131 in sight. The Stochastic Oscillator and the MACD are heading down, supporting a negative view. Investors are recommended to ‘Sell on Strength’, keeping stoploss above 39,340. The support and resistance are at 38,560 and 39,607, respectively.
NML – closed above short and medium term moving averages
Strategy: ‘Buy on dips’ – targeting Rs155.25; stoploss at Rs138.00.
ATRL – Downside likely
Strategy: ‘Sell on Strength’ – targeting Rs253.40 and Rs239.44; stoploss at Rs280.00.