Karachi, September 04, 2023 (PPI-OT): KSE-100 - Pullback inside the band is likely

The index opened on a flat note and faced a volatile session. The local bourse posted a low of 207pts, a high of 356pts and concluded with a gain of 310pts to settle at 45,313pts. The volumes witnessed in the last trading session were comparatively lower than the previous trading session. The Index closed below the lower band by 6.3%. A short-term pull-back inside the bands is likely. The Index is currently sustaining below 50-SMA on daily chart. Among the momentum oscillators, RSI (Relative Strength Index) is currently trading at 36.07.

The chart formation depicts that the index may find initial support near 45,000. A break below mentioned support can result into further weakness towards 44,600 and 44,200pts level. Alternatively, the index can face resistance near 45,600pts initially and then head towards 46,000 and 46,500 area. It is recommended to accumulate positions on weakness with risk defined below support zone.