Karachi, May 13, 2022 (PPI-OT): KSE-100: Sharp recovery witnessed

The index opened with a slightly positive bias and underwent a volatile session. The local bourse posted an intraday high of 169pts, a low of 590pts and concluded with a gain of 35pts to settle at 42,898pts level. The index remained under pressure for the most of the trading hours of last trading session. A sharp recovery witnessed in the late hours which pared all loses made during intra day trading. The index is sustaining above major support zone on closing basis. The stochastic oscillator is currently below 20. This is an indication that the index is in “oversold” condition.

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.