Karachi, June 26, 2018 (PPI-OT):KSE-100; Downside likely with 40,360 in sight
Bears continued to dominate the session as the KSE-100 index lost 659 points to close at 40,978. Volumes stood low at 167mn shares versus 179mn shares traded previously. If the decline continues, the likely target will be at 40,360, with a chance of later extending towards 39,682. However, any upside will face resistance in the range of 41,240-41,420; where a break above will kick off the upward correction. The RSI and the MACD have continued to decline, supporting a bearish view. JS Securities Limited recommends investors to ‘Sell’ on the higher side, keeping stoploss above 41,420. The support and resistance are at 40,542 and 41,420, respectively.
OGDC – Downside likely
Strategy: ‘Sell on Strength’ – targeting Rs148.95 and Rs145.52; stoploss at Rs158.84.
ENGRO – Moving averages to restrict upside
Strategy: ‘Sell on Strength’ – targeting Rs295.77; stoploss at Rs310.59.