Karachi, August 25, 2023 (PPI-OT): KSE-100 - Sustains above 30-SMA; upside likely

Market View - Technical

The index opened on a positive note and faced a bullish session. The local bourse posted a high of 576pts and concluded with a gain of 332pts to settle at 47,751pts. The volumes witnessed in the last trading session were comparatively higher than the previous trading session. The Index is hovering near middle Bollinger band on daily chart. A sustenance above it could enhance the gains, the Index also tested 10-SMA in the last trading session and closed below it. The local bourse closed above the lower band by 39.8%. Bollinger Bands are 26.12% narrower than normal. During the past 10 trading sessions, there have been 4 white candles and 6 black candles for a net of 2 black candles.

The chart formation depicts that the index may find initial support near 47,400. A break below mentioned support can result into further weakness towards 47,200 and 47,00pts level. Alternatively, the index can face resistance near 48,000pts initially and then head towards 48,200 and 48,500 areas. It is recommended to accumulate positions on weakness with risk defined below support zone.