Karachi, In a volatile trading session, the KSE-100 index witnessed a significant downturn, opening on a positive note but ultimately closing with a substantial loss of 954 points, settling at 64,802 points. The trading session saw a marked decrease in volumes compared to the previous session, indicating a bearish sentiment among investors.
According to AKD Securities Limited, the last trading session observed a notable bearish candle, with the index fluctuating between a high of 104 points and a low of 1,091 points before concluding with a loss. This movement is indicative of the current uncertain market conditions and investor caution. The Relative Strength Index (RSI), an indicator of market momentum, was reported at 56.24, suggesting that the market is neither overbought nor oversold.
The technical analysis provided by AKD Securities outlines potential support and resistance levels for the KSE-100 index. Initial support is identified near 64,400 points, with further declines possibly leading the index towards 64,000 and 63,700 points. Conversely, resistance is initially forecasted near 65,100 points, with potential upward movements targeting the 65,400 and 65,700 point ranges. Investors are advised to trade with caution and consider accumulating positions near the support zone with clearly defined risks.
The report emphasizes the importance of technical indicators such as the RSI, Bollinger Bands, MACD, and the exponential moving average (EMA) in evaluating market trends and making informed investment decisions. These tools provide insights into the potential direction of the market, highlighting opportunities for investors to enter or exit positions based on the analysis of price movements and market momentum.
In conclusion, the current market conditions in the Karachi stock exchange reflect a period of uncertainty and volatility, with the KSE-100 index experiencing a significant pullback in the latest trading session. Investors are encouraged to approach the market with caution, utilizing technical analysis to guide their trading decisions and manage risk effectively.