Karachi, July 04, 2022 (PPI-OT): KSE-100: KSE-100 Experiencing very low volatility

The index opened on a positive note and remained volatile throughout the last trading session. The local bourse posted an intraday high of 204pts, a low of 5pts to settle at 41,630 pts level with a gain of 90pts. The volumes witnessed in the last trading session were comparatively lower than the previous trading session. Bollinger Bands are 42.13% narrower than normal. The local bourse is currently experiencing very low volatility as compared to its normal range. The probability of volatility increasing with a sharp move is likely in the near future.

The chart formation depicts that the index may find initial support near 41,200. A break below mentioned support can result into further weakness towards 40,800 and 40,500pts level. Alternatively, the index can face resistance near 41,800pts initially and then head towards 42,100 and 42,500 area. It is recommended to accumulate positions on weakness with risk defined below support zone.