Karachi, October 26, 2022 (PPI-OT): KSE-100: Faces a bearish session

The index opened on a slightly negative note and remained volatile throughout the last trading session. The local bourse posted an intraday high of 176pts, a low of 191pts and concluded with a loss of 157pts to settle at 42,190pts. The volumes clocked in the last trading session were comparatively higher than the previous trading session. The index is currently sustaining above minor moving averages on daily chart. Daily parabolic SAR (Stop and Reverse) is currently appearing below the current level of the Index. Bollinger Bands are 43.78% narrower than normal. The narrow width of the bands suggests low volatility as compared to the normal range.

The chart formation depicts that the index may find initial support near 42,000. A break below mentioned support can result into further weakness towards 41,800 and 41,500pts level. Alternatively, the index can face resistance near 42,500pts initially and then head towards 42,800 and 43,100 area. It is recommended to accumulate positions on weakness with risk defined below support zone.