Karachi: The KSE-100 index experienced a volatile trading session, opening on a positive note but concluding with a slight loss. It registered a peak gain of 609 points but eventually closed down by 77 points at 77,114 points. This fluctuation was characterized by lower trading volumes compared to the previous session, and the index finished above its lower Bollinger Band by 14.7%.
According to AKD Securities Limited, the KSE-100 exhibited significant volatility with a narrowing of the Bollinger Bands by 17.55%. Over the last ten sessions, the market dynamics showed a dominance of bearish sentiment with eight black candles compared to two white ones, resulting in a net of six black candles. The Relative Strength Index (RSI) is currently at 42.19, indicating a momentum below the neutral level. The technical analysis suggests that the index may find initial support around 76,900 points. A breach below this level could lead to further declines towards 76,500 and 76,200 points. Conversely, resistance is anticipated near 77,700 points, with potential to advance towards 78,200 and 78,500 points. Market participants are advised to consider buying near the support zone with clearly defined risks.
The trading activity also included specific stock recommendations for buying and selling. Notable stocks mentioned for purchase included GHNI, TOMCL, DFML, AIRLINK, and PTC, each with specified target and stop-loss levels. On the selling side, recommendations were made for CNERGY, TRG, GGL, PIBTL, and MLCF, also with detailed trading parameters.