Karachi, January 24, 2020 (PPI-OT): KSE-100; Range bound activity is likely to continue
The KSE-100 index after making a high of 42,906, slid to close at 42,507, down 54 points. Volumes stood at 231mn shares versus 178mn shares traded previously. The index is likely to re-test support at 42,440 where a fall below will target the 30-DMA at 41,815. However, any upside will face resistance in the range of 42,615-42,910 where a break above will cause the uptrend to resume with 43,468 as the next target. The RSI and the MACD have moved down, supporting a corrective view. Investors are recommended to ‘Sell on Strength’, with risk defined above 42,906. The support and resistance are at 42,231 and 42,784, respectively.
NBP: Upside likely
Strategy: ‘Buy on dips’ – targeting Rs47.37 and Rs48.45; stoploss at Rs44.22.
HUBC: Slide to continue
Strategy: ‘Sell on Strength’ – targeting Rs95.59; stoploss at Rs103.25.