Karachi, February 26, 2020 (PPI-OT): KSE-100; Slide to continue
The KSE-100 index extended the decline to close at 38,858 (-285 points). Volumes stood at 124mn shares versus 144mn shares traded previously. The index is likely to revisit yesterday’s low of 38,693 where a fall below will extend the decline towards 38,003. However, any upside will find resistance in the range of 38,930-39,155. The 30-DMA has crossed below the 50-DMA which is a bearish sign. Moreover, the RSI and the MACD have continued to decline, supporting a negative view. Investors are recommended to ‘Sell on Strength’, with risk defined above 39,155. The support and resistance are at 38,565 and 39,155, respectively.
ENGRO: Slide to continue
Strategy: ‘Sell on Strength’ – targeting Rs294.85; stoploss at Rs318.90.
DGKC: Downside target remains intact
Strategy: ‘Sell on Strength’ – targeting Rs61.14; stoploss at Rs66.45.