Karachi, July 11, 2019 (PPI-OT): KSE-100; Range bound activity is likely to continue
The KSE-100 index witnessed a range bound activity to close at 33,840, down 16 points. Volumes stood at 41mn shares versus 60mn shares traded previously. The index is likely to re-test support at 33,797 where a fall below will extend the decline towards 33,410, which could later extend to 32,695. However, any upside is likely to face resistance at 33,955 (yesterday’s high) where a break above will target 34,766 (30-DMA). The RSI and the MACD have moved down, supporting a negative view. Investors are recommended to ‘Sell on Strength’, with risk defined above 33,955. The support and resistance are at 33,746 and 33,934, respectively.
ENGRO: Restricted upside
Strategy: ‘Sell on Strength’ – targeting Rs260.00; stoploss at Rs273.31.
DGKC: Downside target remains intact
Strategy: ‘Sell on Strength’ – targeting Rs48.80; stoploss at Rs53.01.