JS Securities Limited – Pakistan Market: Technical Outlook

Karachi, February 11, 2019 (PPI-OT): KSE-100;
Correction to continue

The KSE-100 index lost 445 points to
close at 40,887. Volumes stood at 169mn shares versus 138mn shares traded
previously. The index has dropped below the 200-DMA that will restrict upside
at 41,113; where a break above is needed to refresh upward momentum. Meanwhile,
a drop below Friday’s low will extend the decline towards 40,595, followed by
39,870. The RSI and the Stochastic Oscillator have generated a Sell signal,
suggesting a corrective trend ahead. JS Securities Limited recommends investors
to ‘Sell on Strength’, keeping stoploss above the 200-DMA. The support and
resistance are at 40,571 and 41,206, respectively.

MCB: Correction to continue

Strategy: ‘Sell on Strength’ – targeting
Rs199.89; stoploss at Rs210.00.

NCL: Downside likely

Strategy: ‘Sell on Strength’ – targeting
Rs53.97; stoploss at Rs58.11.

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