AKD Securities Limited – AKD Technical Daily (17 -03 -2023)

Karachi, March 17, 2023 (PPI-OT): KSE-100: Consolidating above 200-SMA

The index opened on a negative note and a range bound activity amidst low volumes The index opened on a positive note and faced a volatile session amidst good volumes. The local bourse posted an intraday high of 249pts, a low of 233pts and concluded with a loss of 180pts to settle at 41,694pts. The volumes clocked in the last trading session were comparatively higher than the previous trading session.

The Index is currently 0.6% above its 200-SMA (Simple Moving Average). Volatility is low when compared to the average volatility over the last ten trading sessions. There seems to be a possibility that an increase in volatility along with sharp fluctuations in the near future could be expected. Volume indicators reflect volume flowing into and out of the Index at a relatively equal pace. Among the strength Indicators, RSI (Relative Strength Indicator) is currently at 58 and seems to move towards neutral mark.

The chart formation depicts that the index may find initial support near 41,450. A break below mentioned support can result into further weakness towards 41,100 and 40,800pts level. Alternatively, the index can face resistance near 42,100pts initially and then head towards 42,500 and 42,800 area. It is recommended to accumulate positions on weakness with risk defined below support zone.