JS Securities Limited – Pakistan Market: Technical Outlook

Karachi, December 05, 2018 (PPI-OT): KSE-100; Short term rebound likely

The KSE-100 index closed the session higher at 39,603, up 442 points. Volumes stood at 196mn shares versus 164mn shares traded previously. Despite a positive closing, the index has formed a lower high and lower low that indicates that the trend is still negative. However, a short term rebound cannot be ruled out. A break above yesterday’s high will target the 50-DMA at 40,156, followed by 40,849 (30-DMA). Meanwhile, a fall below 38,889 (yesterday’s low) will continue the downtrend with 38,555 in sight. The RSI has improved, while the MACD is heading down, signaling no clear trading view. We recommend investors to stop selling above 39,658. The support and resistance are at 39,205 and 40,005, respectively.

UBL: Upside likely

Strategy: ‘Buy on dips’ – targeting Rs153.21; stoploss at Rs140.00.

AICL: Upside to continue

Strategy: ‘Buy on dips’ – targeting Rs49.86; stoploss at Rs43.98.

You May Also Like