Karachi, June 03, 2022 (PPI-OT): KSE-100: Approaches near an important support

The index opened on a negative note and remained bearish throughout the last trading session. The local bourse posted an intraday high of 67pts, a low of 623pts and concluded with a loss of 518pts to settle at 42,238pts level. The volumes witnessed in the last trading session were slightly better than the previous trading session. The local bourse is currently trading below short-term moving averages on daily chart. Trend forecasting oscillators are currently bearish on the local bourse. A decline below 42,100 could enhance the chance for a further leg down in upcoming trading sessions.

The chart formation depicts that the index may find initial support near 42,100. A break below mentioned support can result into further weakness towards 41,800 and 41,650pts level. Alternatively, the index can face resistance near 42,500pts initially and then head towards 42,800 and 43,100 area. It is recommended to trade with a cautious approach and use stop loss during intraday trading.