Karachi, April 20, 2022 (PPI-OT): KSE-100: Range bound activity is expected

The index opened on a positive note and faced a volatile session. The Index posted an intraday high of 207pts, a low of 270pts and concluded with a loss of 206pts to settle at 46,333pts level. The volumes witnessed during the last trading session were comparatively lower than the previous trading session. Bollinger Bands are 88.16% wider than normal. The large width of the bands suggest high volatility as compared to normal range. Therefore, the probability of volatility decreasing and the index seems to enter (or remain in) a trading range has increased for the near-term. The bands have been in this wide range for the last six trading sessions.

The chart formation depicts that the index may find initial support near 46,300. A break below mentioned support can result into further weakness towards 46,000 and 45,700pts level. Alternatively, the index can face resistance near 46,700pts initially and then head towards 46,950 and 47,200 area. It is recommended to trade with a cautious approach and use stop loss during intraday trading.