Karachi, December 19, 2017 (PPI-OT):Consolidation likely; stay ‘long’ above 37,737
The KSE-100 index posted a loss of 262 points to close at 38,384. Volumes stood at 50mn shares versus 140mn shares traded previously. The current pattern suggests that the index is expected to consolidate at current levels. The RSI has moved down, while the Stochastic Oscillator is rising, supporting a neutral view. JS Securities Limited recommends investors to view any downside as an opportunity to ‘Buy’, as long as the index trade above 37,737 (intraday low of Dec 12, 2017). The recovery target remains intact at 39,217, followed by 40,131. The immediate support and resistance are at 38,215 and 38,553, respectively.
MCB – Downside likely
Strategy: ‘Sell on Strength’ – targeting Rs188.21; stoploss at Rs197.75.
SNGP – Recovery target remains intact
Strategy: ‘Buy on dips’ – targeting Rs98.92; stoploss at Rs93.74.