Karachi, May 18, 2023 (PPI-OT): KSE-100 - Corrective move expected

The index opened on a positive note and faced a volatile session. The local bourse posted a high of 104pts, a low of 188pts and concluded with a loss of 173pts to settle at 41,834pts. The volumes clocked in the last trading session were comparatively lower than the previous trading session. The Index is currently 1.2% above its 200-period moving average and is in an upward trend. Volatility is relatively normal as compared to the average volatility over the last 10 trading sessions. Volume indicators reflect very strong flows of volume into KSE100 (bullish). Trend forecasting oscillators seem a bit exhausted and call for a corrective move in near term.

The chart formation depicts that the index may find initial support near 41,500. A break below mentioned support can result into further weakness towards 41,100 and 40,800pts level. Alternatively, the index can face resistance near 42,000pts initially and then head towards 42,300 and 42,500 area. It is recommended to trade with a cautious approach and focus on profit taking.