KSE-100 Index Trend Score

KSE-100 Index (Last: 14564.68, up 52.61 points)

The Index is likely to move higher today, after registering gains yesterday. Major support remains at 14500 while 14700 is the resistance.

OGDC is ready for an upward breakout. The stock is showing consolidation in the range of 150-172 for the past six months and we believe time is ripe for the stock to muster strength and breach this level on the upside to target historic highs in the region of Rs 180-200 area. Near term support is placed at Rs 167. We recommend buying the stock on weakness. 

KSE-100 Index Trend Score

KSE-100 Index (Last: 14512.07, down 15.18 points)

The Index ended the day in red for the fourth day in a row. Modest losses (84 points in four trading days) coupled with low velocity on the downside is indicating the strength of the uptrend. Yesterday’s price action was also supportive to bulls in general as the Index dipped below 14500 before ending the day above the support level.

We expect gains in the short term and our target level is 14700. Our top picks for the day are AICL, DGKC, JSCL, MCB, NBP and OGDC. We recommend buying in these stocks. The ideal buying price should be below yesterday’s closing price and a protective stoploss must be placed at 2% below the purchase price.

KSE-100 Index Trend Score

KSE-100 Index (Last: 14527.25, down 37.23 points)

It was a typical profit booking day at Karachi Stock Exchange as investors booking profits in ICI, JSCL and HBL. The Index fell 37 points to close the day at 14527. We maintain our positive stance on the market and expect it to move higher from current levels. Major support is at 14500. Major resistance is at 14700.

Out of 27 stocks we cover, 22 are in the buy mode while 7 are in the sell mode. A few of the stocks are better placed compared to others. These stocks are AHCL, FFC, HUBC, MCB and PTC. We recommend buying the above mentioned stocks. We advice sell on rise in PSO, ENGRO and LOTPTA.

KSE-100 Index Trend Score

KSE-100 Index (Last: 14564.48, down 3.73 points)

The Index fell 4 points to close the day at 14564.48. Though modest, it was the second negative close in a row. Expect uptrend to continue in the near term. The Index is enjoying good buying support around 14500 while major resistance is placed around 11650-11700 zone. Maintain longs.

Trading Strategy: Buy on dips in stocks with positive Trend Score and sell on rise in stocks with negative Trend Score. Keep a close watch on the "Trend Score Change" column to get the idea which way the Trend Score is heading (Its getting better or worse).

ENGRO Chemicals

ENGRO (Last: Rs 101.26, down Rs 0.93)

Avoid for passive long only investors. Sell on rise for traders.

ENGRO is making lower tops since early 2008 and recently it has started underperforming the KSE-100 Index. At this moment, the stock is showing downtrend on all three counts (short, medium and long term basis) as the two weeks moving average is trading below both 12 weeks and 52 weeks moving average. We have seen some choppy trading pattern in the recent past mainly due to the flat price action exhibited by the stock for the past six months.

In our view, for a sustainable rise, the stock must clear its major resistance zone at 115-120 level. As the moving average setup is indicating, ENGRO will resume its long term uptrend only after clearing the 115-120 resistance level.

Long term investors should avoid this stock till it declares either a long term uptrend signal or sells off to recent lows. However, for short term traders, the stock is a sell on rise till it clears Rs 120 hump. Major support prices are Rs 95, Rs 85 and Rs 70.