Karachi, May 21, 2020 (PPI-OT): KSE-100; Consolidation to continue
The KSE-100 index posted a loss of 226 points to close at 33,933. Volumes stood at 165mn shares versus 248mn shares traded previously. The index is likely to revisit yesterday’s low of 33,787 where a fall below will initiate the downtrend with 32,906 in sight. However, a break above 34,224 will continue the uptrend with 35,655 as the next target. Meanwhile, the RSI and the Stochastic Oscillator have shown weakness, suggesting a corrective trend ahead. JS Securities Limited recommends investors to ‘Sell’ below 33,787. The support and resistance are at 33,701 and 34,166, respectively.
FFBL: Downside likely
Strategy: ‘Sell on Strength’ – targeting Rs15.83 and Rs15.06; stoploss at Rs17.58.
LOTCHEM: Restricted Upside
Strategy: ‘Sell on Strength’ – targeting Rs9.13 and Rs8.23; stoploss at Rs10.06.