Karachi, January 12, 2018 (PPI-OT):Consolidation likely; stay cautious
After making a low of 43,141 the KSE-100 index recovered to close at 43,395, down 235 points. Volumes stood at 319mn shares versus 328mn shares traded previously. The current pattern suggests that the index is expected to consolidate at current levels. Meanwhile, a break above yesterday’s high will continue the uptrend with 44,434 as the next target. However, any downside will find support at yesterday’s low of 43,141; where a fall below will kick off the corrective trend. The RSI has moved down, while the MACD is rising, signalling no clear trading view. JS Securities Limited recommends investors to stay cautious at current levels. The support and resistance are at 43,008 and 43,786, respectively.
MCB – Upside target remains intact
Strategy: ‘Buy on dips’ – targeting Rs228.27 and Rs236.48; stoploss at Rs221.80.
PTC – Upside likely
Strategy: ‘Buy on dips’ – targeting Rs14.35; stoploss at Rs13.55.