Pakistan Market: Technical Outlook Today

KSE-100: Upside likely

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April 17: The KSE-100 index extended the gain to close at 169,912 level, up 1,392 points DoD. Volumes stood at 973mn shares versus 1,206mn shares traded previously. If the gain continues, the next target will be at 173,112 level which may later rise to 179,280 level. However, any downside will find support between 167,950 and 168,950 levels as a fall below that will invalidate the above targets. Both, the RSI and the MACD are heading up, supporting a positive view. We recommend investors to ‘Buy on dips’, keeping stoploss below the 167,960 level. The support and resistance are at 168,935 and 170,894 levels, respectively.

ISL: Closed above the 50-DMA
Strategy: ‘Buy on dips’ – targeting Rs88.16 & Rs92.03; stoploss at Rs82.00.
UBL: A steady uptrend to continue
Strategy: ‘Buy on dips’ – targeting Rs387.00 & Rs396.12; stoploss at Rs373.00.

April 16: Positive momentum continued as the KSE-100 index gained 2,885 points to close at 168,520 level. Volumes stood at 1,206mn shares versus 825mn shares traded previously. The index is expected to test resistance at 170,640 (yesterday’s high) where a break above that will target 173,112 level. However, any downside will find support between 166,650 and 167,590 levels. The RSI and the MACD are heading up, supporting a positive view. We recommend investors to ‘Buy on dips’, with risk defined below the 166,657 level. The support and resistance are at 167,589 and 170,045 levels, respectively.

PSO: Play the range
Strategy: ‘Buy on dips’ – targeting Rs375.40 & Rs385.39; stoploss at Rs357.54.
UBL: Closed above 30-DMA
Strategy: ‘Buy on dips’ – targeting Rs382.48 & Rs387.00; stoploss at Rs361.90.