Karachi, February 28, 2018 (PPI-OT): Consolidation to continue; ‘Sell on Strength’
Range bound activity continued for the KSE-100 index as it closed at 42,995, up 84 points. Volumes stood at 145mn shares versus 168mn shares traded previously. The index is expected to consolidate between the 50-DMA and the 200-DMA that are standing at 42,686 and 43,649, respectively. A break above or below is needed for a directional move. The RSI has improved, while the Stochastic Oscillator is heading down, supporting a neutral view. JS Securities Limited recommends investors to continue with a ‘Sell on Strength’ strategy, and risk defined above the 200-DMA. The support and resistance are at 42,693 and 43,299 respectively.
AICL – Downside likely
Strategy: ‘Sell on Strength’ – targeting Rs54.78; stoploss at Rs57.14.
APL – Upside likely
Strategy: ‘Buy on dips’ – targeting Rs571.16; stoploss at Rs559.99.