Karachi, August 01, 2022 (PPI-OT): KSE-100: Monthly closing below 50-SMA

The index opened on a negative note and remained volatile throughout the last trading session. The local bourse posted an intraday high of 145pts, a low of 250pts and concluded with a loss of (down) 126pts to settle at 40,150pts. The volumes witnessed in the last trading session were comparatively lower than the last trading session. The index closed below 50-SMA (Simple Moving Average) on monthly chart. The index closed for the first time below this moving average after Oct’2020. Volatility is extremely low when compared to the average volatility over the last 10 trading sessions. There seems a possibility that there could be an increase in volatility along with sharp fluctuations in the near future.

The chart formation depicts that the index may find initial support near 40,000. A break below mentioned support can result into further weakness towards 39,700 and 39,500pts level. Alternatively, the index can face resistance near 40,600pts initially and then head towards 40,900 and 41,300 area. It is recommended to accumulate positions on weakness with risk defined below 39,200 area.