Karachi, July 03, 2023 (PPI-OT): KSE-100 - Positive sentiment persists

The index opened with a negative note and remained volatile throughout the last trading session. The local bourse posted a high of 169pts, a low of 229pts and concluded with a marginal gain of 16pts to settle at 41,453pts. The volumes clocked in the last trading session were comparatively higher than the previous trading session. The Index managed to close above 200-SMA (Simple Moving Average) on daily chart. The volume bars are increasing with the positivity of the Index and a positive divergence witnessed in MACD, histogram has appeared in the positive territory from negative zone. Daily parabolic SAR (Stop and Reverse) is currently appearing below the current level of the Index which also cements a positive view in near term.

The chart formation depicts that the index may find initial support near 41,100. A break below mentioned support can result into further weakness towards 40,800 and 40,500pts level. Alternatively, the index can face resistance near 42,000pts initially and then head towards 42,500 and 42,800 areas. It is recommended to accumulate positions on weakness with risk defined below support zone.