Karachi, May 16, 2018 (PPI-OT):200-DMA to restrict upside; ‘Sell on Strength’
The KSE-100 index witnessed a volatile session to close at 42,460, down 39 points. Volumes stood at 181mn shares versus 176mn shares traded previously. The index is expected to revisit yesterday’s low of 41,845; where a fall below will continue the downtrend with 41,225 and 40,214 as the next targets.However, any upside will face resistance at the 200-DMA that is standing at 42,777; where a break above will kick off the upward correction. The RSI and the MACD are heading down, supporting anegative view. JS Securities Limited recommends investors to ‘Sell on Strength’, keeping stoploss above the 200-DMA. The support and resistance are at 42,003 and 42,921, respectively.
ENGRO – Downside target remains intact
Strategy: ‘Sell on Strength’ – targeting Rs280.72; stoploss at Rs298.00.
PPL – Restricted upside
Strategy: ‘Sell on Strength’ – targeting Rs194.76; stoploss at Rs213.91.