Karachi, February 06, 2018 (PPI-OT):Consolidation continues; ‘Sell on Strength’ maintained
The KSE-100 index failed to sustain its intraday high of 44,637 and slid to close at 44,301, up 46 points. Volumes stood at 284mn shares versus 228mn shares traded previously. The index is expected to re-test resistance at Friday’s high; where a break above will resume the uptrend with 45,966 and 47,538 as the next targets. However, any downside will find support in the range of 44,105-44,255; where a drop below will extend the decline towards 43,502, followed by 42,543. The indicators are mixed, signalling no clear trading view. JS Securities Limited recommends investors to continue with a ‘Sell on Strength’ strategy, with risk defined above 44,637. The support and resistance are at 44,074 and 44,530, respectively.
LOTCHEM – Closed above the 200-DMA
Strategy: ‘Buy on dips’ – targeting Rs9.29 and Rs9.46; stoploss at Rs8.79.
PSO – Upside target remains intact
Strategy: ‘Buy on dips’ – targeting Rs333.22 and Rs340.28; stoploss at Rs318.90.