Karachi, December 20, 2017 (PPI-OT):KSE-100 index to test its recent low; stay cautious
The KSE-100 index extended the decline to close at 37,919 (-465 points). Volume stood at 109mn shares versus 50mn shares traded previously. The index is expected to test support at 37,737 (low of Dec 12, 2017); where a fall below will resume the downtrend with 37,263 and 36,387 as the next targets. However, any upside will face resistance in the range of 38,040-38,240. A bullish divergence has been created on RSI, while the MACD is heading down, signalling no clear trading view. Investors are recommended to stay cautious at current level. The support and resistance are at 37,601 and 38,240, respectively.
MCB – Downside likely
Strategy: ‘Sell on Strength’ – targeting Rs188.21; stoploss at Rs196.83.
ENGRO – Upside restricted at the 30-DMA
Strategy: ‘Sell on Strength’ – targeting Rs249.00 and Rs240.49; stoploss at Rs266.82.