Karachi, December 15, 2017 (PPI-OT):KSE-100 – Recovery target remains intact at 39,217
The KSE-100 index posted a loss of 596 points to close at 38,224. Volumes stood dull at 93mn shares versus 118mn shares traded previously. An Engulfing Bearish formation has occurred indicating that the recovery trend remains intact with 39,217 as the recovery target. Moreover, a bullish divergence has been created on the RSI, supporting the above view. Meanwhile, any downside will find support at 37,737 (low of Dec 12, 2017); where a drop below will cause the downtrend to resume with 37,263 in sight. JS Securities Limited recommends investors to view any downside as an opportunity to ‘Buy’, with risk defined below 37,737. The support and resistance are at 37,951 and 38,498, respectively.
PPL – Double Top formation
Strategy: ‘Sell on Strength’ – targeting Rs195.45 and Rs187.47; stoploss at Rs203.51.
SNGP – Recovery trend remains intact
Strategy: ‘Buy on dips’ – targeting Rs98.92; stoploss at Rs88.01.