Karachi, July 22, 2022 (PPI-OT): KSE-100: A selling spree was witnessed

The index opened on a slightly positive note and faced a volatile session. The local bourse posted an intraday high of 117pts, a low of 659pts and concluded with a loss of 628pts to settle at 39,832pts. The volumes witnessed in the last trading session were slightly higher than the previous trading session. The local bourse hammered below 40,000 mark for the first time after Nov’20. The index is approaching towards a 38.2% of the fib retracement level which could act as an important support zone. The area coincides with cluster of support. Technical indicators are exhausting to oversold condition where a potential bounce could be expected.

The chart formation depicts that the index may find initial support near 39,700. A break below mentioned support can result into further weakness towards 39,300 and 38,900pts level. Alternatively, the index can face resistance near 40,200pts initially and then head towards 40,500 and 40,900 area. It is recommended to accumulate positions on weakness with risk defined below 39,000 area.