Karachi, January 12, 2022 (PPI-OT): KSE-100 Index: Approaches 200-SMA

The index opened on a positive note and underwent a volatile session. The local bourse posted a low of 363pts, a high of 167pts and concluded with a slight loss of 7pts to settle at 45,882pts level while trading volumes decreased by 19% DoD. The index has been forming a higher high and a higher low for the last three consecutive trading sessions. The index has approached near 200-SMA on daily chart.

The chart formation indicates that the index may find initial support near 45,600. A break below mentioned support can result into further weakness towards 45,400 and 45,200pts level. On the other hand, the index can face resistance near 46,000pts on the higher side initially and then head towards 46,400 and 46,650 area. It is recommended to initiate positions on weakness with risk defined below 45,400.