Karachi, August 31, 2023 (PPI-OT): Market View - Technical

The index opened on a flat note and faced another bearish session. The local bourse posted a low of 669pts and concluded with a loss of 526pts to settle at 46,245pts. The volumes witnessed in the last trading session were slightly lower than the previous trading session. The Index is currently trading below 30-SMA on daily chart. The local bourse closed below the lower band by 13.7%. Among the momentum oscillators, RSI (Relative Strength Indicator) is currently trading at 41.21. The Index is approaching towards 50-SMA on daily chart which is currently lying at 45,578 level.

The chart formation depicts that the index may find initial support near 46,100. A break below mentioned support can result into further weakness towards 45,600 and 45,300pts level. Alternatively, the index can face resistance near 46,700pts initially and then head towards 47,100 and 47,500 areas. It is recommended to focus on profit taking and trade with a cautious approach.