Karachi, March 28, 2023 (PPI-OT): KSE-100 – Consolidation expected

The index opened on a negative note and traded in a narrow range amidst low volumes. The local bourse posted an intraday high of 127pts, a low of 101pts and concluded with a loss of 58pts to settle at 40,000pts. The volumes clocked in the last trading session were higher than the previous trading session. The Index closed above the lower band by 4.9%. Bollinger Bands are 8.18% narrower than normal. The Index is currently 3.4% below its 200-period moving average. Volatility is relatively normal as compared to the average volatility over the last 10 trading sessions.

The chart formation depicts that the index may find initial support near 39,800. A break below mentioned support can result into further weakness towards 39,500 and 39,200pts level. Alternatively, the index can face resistance near 40,400pts initially and then head towards 40,700 and 41,000 area. It is recommended to accumulate positions on weakness with risk defined below support zone.