Karachi, July 24, 2023 (PPI-OT): KSE-100_Index closes near 46,000 level

Market View - Technical

The index opened on a slightly negative note and remained bullish throughout the last trading session. The local bourse posted a high of 724pts and concluded with a gain of 522pts to settle at 45,921pts. The volumes witnessed in the last trading session were the highest volume of the week. The Index closed below the upper band by 21.3%. Bollinger Bands are 186.08% wider than normal. The large width of the bands suggest high volatility as compared to the normal range. The probability of volatility decreasing and Index entering (or remaining in) a trading range has increased for the near-term. The bands have been in this wide range for the last couple of weeks. Daily RSI (Relative Strength Index) is currently trading at 76.53.

The chart formation depicts that the index may find initial support near 45,500. A break below mentioned support can result into further weakness towards 45,200 and 44,800pts level. Alternatively, the index can face resistance near 46,100pts initially and then head towards 46,500 and 46,800 areas. It is recommended to accumulate positions on weakness with risk defined below support zone.