Karachi, January 31, 2018 (PPI-OT):KSE-100 to re-test support at the 200-DMA
The KSE-100 index closed the session lower at 44,233, down 224 points. Volumes stood at 282mn shares as compared to 192mn shares traded previously. The index is expected to re-test support at the 200-DMA; where a drop below will kick off the corrective trend with 43,502 and 42,543 as the corrective target. However, any upside will revisit yesterday’s high of 44,615; where a break above will open the way towards 45,966, followed by 47,538. Meanwhile, the RSI and the Stochastic Oscillator have continued to decline, suggesting a corrective trend ahead. JS Securities Limited recommends investors to ‘Sell’ below the 200-DMA. The support and resistance are at 43,938 and 44,530, respectively.
FFC – Bullish crossover
Strategy: ‘Buy on dips’ – targeting Rs92.20 and Rs96.34; stoploss at Rs85.95.
PTC – Upside likely
Strategy: ‘Buy on dips’ – targeting Rs14.15; stoploss at Rs13.40.