Karachi, January 16, 2018 (PPI-OT):KSE-100 – Downside likely with 41,511 in sight
Downward movement continued for the KSE-100 index as it closed at 42,347, down 586 points. Volumes stood at 130mn shares versus 239mn shares traded previously. The index is expected to revisit yesterday’s low of 42,270; where a drop below will continue the downtrend with 41,511 and 40,796 as the next targets. However, any upside will face resistance at yesterday’s high of 42,934; where a break above is needed to refresh upward momentum. The RSI and the Stochastic Oscillator are moving down, supporting a bearish view. JS Securities Limited recommends investors to ‘Sell on Strength’, with risk defined above 42,934. The support and resistance are at 42,101 and 42,595, respectively.
ATRL – Dropped below the 30-DMA
Strategy: ‘Sell on Strength’ – targeting Rs230.28; stoploss at Rs248.20.
MCB – Downside likely
Strategy: ‘Sell on Strength’ – targeting Rs212.17; stoploss at Rs223.02.