Karachi, April 27, 2023 (PPI-OT): KSE-100: Closes below 200-SMA

The index opened on a positive note and remained volatile throughout the last trading session. The local bourse posted an intraday high of 357pts and concluded with a gain of 92pts to settle at 41,100pts. The volumes clocked in the last trading session were comparatively higher than the previous trading session. The Index closed below 200-period moving average in the last trading session. The Index closed above the upper band by 13.8%. The narrow width of the bands suggests low volatility as compared to the normal range. Therefore, the probability of volatility increasing with a sharp move has increased for the near-term.

The chart formation depicts that the index may find initial support near 40,800. A break below mentioned support can result into further weakness towards 40,500 and 40,200pts level. Alternatively, the index can face resistance near 41,300pts initially and then head towards 41,800 and 42,200 area. It is recommended to accumulate positions on weakness with risk defined below support zone.