Karachi, August 04, 2023 (PPI-OT): KSE-100 - Profit taking witnessed

The index opened on a positive note and faced a volatile session. The local bourse posted a high of 640pts, a low of 223pts and concluded with a loss of 153pts to settle at 48,611pts. The volumes witnessed in the last trading session were comparatively lower than the previous trading session. The Index is currently 16.6% above its 200-period moving average and is in an upward trend. Volatility is low when compared to the average volatility over the last 10 periods. There seems a possibility that there will be an increase in volatility along with sharp fluctuations in the near future. Volume indicators reflect very strong flows of volume into the local bourse. Trend forecasting oscillators are currently bullish. Momentum oscillator is currently indicating that the Index is currently in an overbought condition.

The chart formation depicts that the index may find initial support near 48,400. A break below mentioned support can result into further weakness towards 48,100 and 47,800pts level. Alternatively, the index can face resistance near 48,900pts initially and then head towards 49,350 and 49,600 areas. It is recommended to trade with a cautious approach and focus on profit taking.