Karachi, July 05, 2022 (PPI-OT): KSE-100: Downside move amidst low volumes

The index opened on a positive note and underwent a volatile trading session. The local bourse posted an intraday high of 55pts, a low of 282pts to settle at 41,248 pts level with a loss of 282pts. The volumes witnessed in the last trading session were comparatively lower than the previous trading session. An engulfing bearish candle occurred. Bollinger Bands are 41.44% narrower than normal. 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.