Karachi, May 12, 2022 (PPI-OT): KSE-100: Plummeted by 641pts

The index opened with a positive bias and underwent a bearish session. The local bourse posted an intraday high of 145pts, a low of 1,110pts and concluded with a loss of 641pts to settle at 42,863pts level. The index remained under pressure for the whole trading session. Trading below major moving averages and breakage of an important trend line triggered panic which supported bearish trading. The index traded below major trend line but managed to close above it. Short term charts are in an oversold trajectory where a pullback for a short period of time could be expected.

The chart formation depicts that the index may find initial support near 42,700. A break below mentioned support can result into further weakness towards 42,400 and 41,800pts level. Alternatively, the index can face resistance near 43,400pts initially and then head towards 43,800 and 44,100 area. It is recommended to trade with a cautious approach and use stop loss during intra day trading.