Karachi, March 31, 2023 (PPI-OT): KSE-100 – Remains range bound

The index opened on a flat note and remained range bound throughout the last trading session. The local bourse posted an intraday high of 126pts, a low of 83pts and concluded with a loss of 32pts to settle at 39,848pts. The volumes clocked in the last trading session were slightly higher than the previous trading session. The Index is currently trading below minor and major moving averages on daily chart. The Index has been consolidating in a thin range for the last four trading sessions. The Index closed above the lower band by 9.9%. Bollinger Bands are 8.73% wider than normal. The current width of the band does not suggest any surprise move in near future. During the past 10 trading sessions, there have been 2 white candles and 8 black candles for a net of 6 black candles.

The chart formation depicts that the index may find initial support near 39,800. A break below mentioned support can result into further weakness towards 39,500 and 39,200pts level. Alternatively, the index can face resistance near 40,400pts initially and then head towards 40,700 and 41,000 area. It is recommended to accumulate positions on weakness with risk defined below support zone.