Karachi, May 06, 2022 (PPI-OT): KSE-100: Bounces from 50-SMA

The index opened with a negative note and remained bearish throughout the last trading session. The Index posted an intraday low of 885pts and concluded with a loss of 284pts to settle at 45,249pts level. A sharp recovery witnessed after testing 50-SMA during intraday trading. The index recovered majority of loses but could not manage to close in green. The volumes reflected in the last trading session were comparatively higher than the previous trading session.

The chart formation depicts that the index may find initial support near 44,950. A break below mentioned support can result into further weakness towards 44,650 and 44,300pts level. Alternatively, the index can face resistance near 45,500pts initially and then head towards 45,800 and 46,100 area. It is recommended to accumulate positions on weakness and trade with a cautious approach while use stop loss during intraday trading.