Karachi, August 10, 2023 (PPI-OT): KSE-100 - Sharp recovery witnessed

Market View - Technical

The index opened on a negative note and faced a volatile session. The local bourse posted a high of 905pts, a low of 167pts and concluded with a gain of 798pts to settle at 48,228pts. The volumes witnessed in the last trading session were slightly lower than the previous trading session. The Index closed below the upper band by 23.2%. Bollinger Bands are 91.98% wider than normal. The large width of the bands suggest high volatility as compared to the normal range of the Index. The local bourse is currently trading 15.4% above its 200-period moving average on daily charts. Volume indicators reflect moderate flows of volume into the Index.

The chart formation depicts that the index may find initial support near 47,900. A break below mentioned support can result into further weakness towards 47,600 and 47,300pts level. Alternatively, the index can face resistance near 48,600pts initially and then head towards 49,000 and 49,400 areas. It is recommended to trade with a cautious approach and focus on profit taking.