Karachi, December 21, 2022 (PPI-OT): KSE-100: sheds more than 1,100 points

The index opened on a slightly negative note and faced a bearish session amidst improved volumes. The local bourse posted an intraday low of 1,438pts and concluded with a loss of 1,138pts to settle at 39,832pts. The volumes clocked in the last trading session were comparatively higher than the previous trading session. The Index closed below the lower band by 19.9%. This combined with the steep downtrend suggests that the downward trend could continue. However, a short-term pull-back inside the bands is likely. The MACD is bearish since it is trading below its signal line. Since the MACD crossed its moving average, the index has decreased 5.32%, and has ranged from a high of 42,658 to a low of 39,533.

The chart formation depicts that the index may find initial support near 39,550. A break below mentioned support can result into further weakness towards 39,200 and 38,800pts level. Alternatively, the index can face resistance near 40,200pts initially and then head towards 40,400 and 40,600 area. It is recommended to trade with a cautious approach.