Karachi, July 23, 2018 (PPI-OT):An Engulfing Bear; stay cautious
The KSE-100 index showed negative movement to close at 41,222, down 574 points. Volumes stood at 223mn shares versus 337mn shares traded previously. The index has dropped below the 30-DMA that will now restrict upside at 41,571, followed by the 50-DMA at 42,019. However, any downside will find support at Friday’s low of 41,157; where a fall below will cause the downtrend to resume. An Engulfing Bear has occurred which indicates a bearish reversal, though, a confirmation is required. JS Securities Limited recommends investors to stay cautious at current levels. The support and resistance are at 40,977 and 41,468, respectively.
LOTCHEM – Upside target remains intact
Strategy: ‘Buy on dips’ – targeting Rs13.59 and Rs14.12; stoploss at Rs12.55.
PSO – Limited Upside
Strategy: ‘Sell on Strength’ – targeting Rs276.00; stoploss at Rs307.91.