Karachi, August 08, 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 449pts, a low of 309pts and concluded with a loss of 200pts to settle at 48,386pts. The volumes witnessed in the last trading session were slightly higher than the previous trading session. The Index closed below the upper band by 16.2%. Bollinger Bands are 101.17% wider than normal. The large width of the bands suggest high volatility as compared to the normal range of the Index. The probability of volatility decreasing and the Index could enter in a trading range has increased for the near-term.
The chart formation depicts that the index may find initial support near 48,100. A break below mentioned support can result into further weakness towards 47,800 and 47,500pts level. Alternatively, the index can face resistance near 48,700pts initially and then head towards 49,000 and 49,350 areas. It is recommended to trade with a cautious approach and focus on profit taking.