Karachi, January 08, 2018 (PPI-OT): Indicators overbought; ‘wait for dips’
Bulls continued to dominate the session as the KSE-100 index gained 615 points to close at 42,524. Volumes stood high at 261mn shares as compared to 222mn shares traded previously. If the gain continues, the initial target will be at 43,441, with a chance of later extending towards 44,006. However, any downside will find support in the range of 42,060-42,310; where a fall below will kick off the corrective trend. The momentum indicators are overbought and the index is trading above the Upper Bollinger Band, hence a short term correction cannot be ruled out. JS Securities Limited recommends investors to stay cautious on the higher side and wait for dips. The support and resistance are at 42,202 and 42,848, respectively.
SNGP – Upside likely
Strategy: ‘Buy on dips’ – targeting Rs105.55; stoploss at Rs97.07.
NML – Trading above the 200-DMA
Strategy: ‘Buy on dips’ – targeting Rs163.92 and Rs166.68; stoploss at Rs152.86.