Karachi, January 21, 2022 (PPI-OT): KSE-100 Index: Closes above 50-SMA

The index opened on a negative note and underwent a bearish session. The local bourse posted a low of 558pts and concluded with a slight loss of 8pts only to settle at 44,826pts level while trading volumes increased by 13% DoD. The local bourse violated 50-SMA during intraday trading but managed to close above it. A hammer candlestick pattern witnessed on daily chart which is considered to be a bullish sign.

The chart formation depicts that the index may find initial support near 44,700. A break below mentioned support can result into further weakness towards 44,550 and 44,250pts level. Alternatively, the index can face resistance near 45,250pts initially and then head towards 45,450 and 45,800 area. It is recommended to trade with a cautious approach and use stop loss during intraday trading.