JS Securities Limited – Pakistan Market: Technical Outlook

Karachi, June 28, 2018 (PPI-OT):KSE-100 – Bearish crossover expected

Recovery continued as the KSE-100 index closed at 41,718, up 472 points. Volumes stood at 236mn shares versus 180mn shares traded previously. The index is likely to revisit yesterday’s high of 41,817; where a break above will deliver short term gains towards 42,212, followed by the 200-DMA at 42,619. However, any downside will find support at 41,246; where a fall below will continue the downtrend with 40,360 and 39,682 in sight. The 30-DMA is on the verge of crossing below the 200-DMA which is a bearish sign. Investors are recommended to stay sellers on the higher side, with risk defined above the 200-DMA. The support and resistance are at 41,484 and 41,953, respectively.

MCB – Downside likely

Strategy: ‘Sell on Strength’ – targeting Rs191.20; stoploss at Rs202.67.

DGKC – Recovery trend ahead

Strategy: ‘Buy on dips’ – targeting Rs124.15; stoploss at Rs110.50.

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