Karachi, June 13, 2019 (PPI-OT): KSE-100 expected to test resistance at the 30-DMA
The KSE-100 index posted a gain of 278 points to close at 34,938. Volumes stood at 151mn shares versus 117mn shares traded previously. The index is expected to test resistance at the 30-DMA standing at 35,229 where a break above will target 36,126 (50-DMA). However, any downside will find support at 34,608 where a fall below will lead to further decline towards 33,951. The RSI has improved, while the Stochastic Oscillator is heading down, supporting a neutral view. We recommend investors to stop selling above the 30-DMA. The support and resistance are at 34,658 and 35,220, respectively.
ENGRO: Recovery to continue
Strategy: ‘Buy on dips’ – targeting Rs280.06 and Rs295.78; stoploss at Rs268.00.
POL: Restricted upside
Strategy: ‘Sell on Strength’ – targeting Rs387.00; stoploss at Rs408.50.