Karachi, December 28, 2022 (PPI-OT): KSE-100: Volatile session expected

The index opened on a slightly positive note and faced a volatile session amidst good volumes. The local bourse posted an intraday high of 161pts, a low of 450pts and concluded with a loss of 352pts to settle at 39,803pts. The volumes clocked in the last trading session were comparatively higher than the previous trading session. The MACD is bearish since it is trading below its signal line. The MACD crossed below its signal line 21 trading sessions ago. Since the MACD crossed its moving average, the local bourse has decreased 5.39%, and has ranged from a high of 42,658 to a low of 39,276.

The chart formation depicts that the index may find initial support near 39,600. A break below mentioned support can result into further weakness towards 39,400 and 39,200pts level. Alternatively, the index can face resistance near 40,400pts initially and then head towards 40,700 and 40,900 area. It is recommended to accumulate positions on weakness with risk defined below support zone.