Karachi, December 14, 2022 (PPI-OT): KSE-100: Short term recovery expected

The index opened on a slightly negative note and faced a volatile session. The local bourse posted an intraday high of 232pts, a low of 28pts and concluded with a gain of 174pts to settle at 41,714pts. The volumes clocked in the last trading session were comparatively higher than the previous trading session. Among the strength indicators, RSI (Relative Strength Index) and stochastics seem to improve which cement a positive view 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 41,300 and 41,100pts level. Alternatively, the index can face resistance near 41,900pts initially and then head towards 42,200 and 42,500 area. It is recommended to initiate buying positions on weakness with risk defined below support level.