Karachi, In an extraordinary trading session today, the KSE-100 Index surged to a record close of 72,764 points, marking an increase of 862 points. The trading volumes also exceeded those of the previous session, reflecting heightened activity. The index is now positioned 26.2% above its 200-period moving average, signifying a robust upward trend despite extreme volatility.

According to AKD Securities Limited, the local bourse commenced the day on a positive note and maintained a bullish stance throughout the session. Analysts noted a significant rise in the index by 1,159 points at its peak during the trading hours. Volume indicators suggest moderate inflows, while trend forecasting oscillators have maintained a bullish outlook for several weeks. However, despite the current overbought conditions indicated by momentum oscillators, there is optimism that volatility may soon diminish, leading to more stabilized market conditions.

Market analysts caution traders to adopt a prudent approach, highlighting potential resistance near the 72,000 to 73,300 points range. Support is expected around 72,500 points, with further dips possibly challenging the 72,100 and 71,800 levels. This cautious sentiment is underscored by the presence of a negative divergence, where the index has recorded a new 14-period high, yet the Relative Strength Index (RSI) has not.

In conclusion, while the KSE-100's record-setting performance signals strong market dynamics, investors are advised to remain vigilant of potential volatility and to strategize their trades with caution.