Karachi, January 03, 2018 (PPI-OT):Formation suggests further upside; ‘Buy on dips’
Bulls continued to dominate the session as the KSE-100 index gained 776 points to close at 41,487. Volumes improved to 229mn shares from 118mn shares traded a day earlier. The index is expected to revisit yesterday’s high; where a break above will lead to further gains towards 42,526. However, any downside will find support in the range of 41,020-41,200. The RSI and the MACD are heading up, supporting a positive view. However, the index is trading above the Upper Bollinger Band, hinting that a short term price fall inside the band is likely. Investors are recommended to ‘Buy on dips’, with risk defined below 41,022. The support and resistance are at 41,022 and 41,957, respectively.
MCB – Closed above the 200-DMA
Strategy: ‘Buy on dips’ – targeting Rs223.20 and Rs228.27; stoploss at Rs209.00.
FFC – Restricted downside
Strategy: ‘Buy on dips’ – targeting Rs85.86; stoploss at Rs78.39.