Karachi, December 13, 2017 (PPI-OT):KSE-100 – hinting a short term recovery
The KSE-100 index after making a low of 37,737 recovered to close at 38,525, up 43 points. Volumes stood at 195mn shares versus 129mn shares traded previously. A long lower shadow has occurred in a downtrend, which indicates a bullish reversal, however, a confirmation is required. Moreover, the RSI and the Stochastic Oscillator have taken an upturn, suggesting a recovery trend ahead. A break above yesterday’s high will confirm the above view with 39,217 as the recovery target. However, any downside will find support at 37,737; where a fall below will continue the downtrend with 37,263 as the next target. JS Securities Limited recommends investors to stop selling above 38,621. The support and resistance are at 37,995 and 39,062, respectively.
NML – Trading above short and medium term moving averages.
Strategy: ‘Buy on dips’ – targeting Rs154.97; stoploss at Rs139.60.
OGDC – Upside likely
Strategy: ‘Buy on dips’ – targeting Rs166.68; stoploss at Rs153.13.