Karachi, July 26, 2023 (PPI-OT): KSE-100_Bullish sentiment persists

Market View - Technical

The index opened on a positive note and remained bullish throughout the last trading session. The local bourse posted a high of 486pts and concluded with a gain of 362pts to settle at 46,417pts. The volumes witnessed in the last trading session were comparatively lower than the previous trading session. Among the strength Indicators, RSI (Relative Strength Indicator) is currently trading at 79.15. The index is currently trading above major moving averages on daily chart. The Index closed below the upper band by 18.0%. Bollinger Bands are 138.66% wider than normal. The large width of the bands suggest high volatility as compared to the normal range of the Index.

The chart formation depicts that the index may find initial support near 45,800. A break below mentioned support can result into further weakness towards 45,500 and 45,200pts level. Alternatively, the index can face resistance near 46,800pts initially and then head towards 47,200 and 47,500 areas. It is recommended to trade with a cautious approach and focus on profit taking.