Karachi, May 17, 2018 (PPI-OT):Upside restricted at the 200-DMA; ‘Sell on Strength’
Downward movement continued for the KSE-100 index as it closed at 42,301, a loss of 158 points. Volumes stood at 78mn shares as compared to 181mn shares traded previously. The current pattern suggests that the index is expected to consolidate at current levels. Meanwhile, a fall below yesterday’s low will continue the downtrend with 41,225 and 40,214 as the next targets. However, any upside will face resistance at 42,759 (200-DMA). The indicators are mixed, signalling no clear trading view. JS Securities Limited recommends investors to stay sellers below the 200-DMA. The support and resistance are at 42,090 and 42,513, respectively.
ENGRO – 200-DMA to restrict upside
Strategy: ‘Sell on Strength’ – targeting Rs280.72; stoploss at Rs295.69.
DGKC – Slide to continue
Strategy: ‘Sell on Strength’ – targeting Rs119.91; stoploss at Rs132.44.