Karachi, August 23, 2022 (PPI-OT): KSE-100: Hovering near 100-SMA

The index opened with a negative note and remained under pressure throughout the last trading session. The local bourse posted an intraday high of 44pts, a low of 483pts and concluded with a loss of (Downward) 444pts to settle at 42,827pts. The volumes clocked in the last trading session were comparatively lower than the previous trading session. The Index is currently 2.4% below its 200-period moving average and is in an upward trend. Volatility is low when compared to the average volatility over the last 10 trading sessions. It seems to be a good possibility that there might be an increase in volatility along with sharp fluctuations in the near future.

The chart formation depicts that the index may find initial support near 42,800. A break below mentioned support can result into further weakness towards 42,500 and 42,200pts level. Alternatively, the index can face resistance near 43,300pts initially and then head towards 43,600 and 43,900 area. It is recommended to accumulate positions on weakness with risk defined below support zone.