AKD Securities Limited – AKD Technical Daily (January 03, 2023)

Karachi, January 03, 2023 (PPI-OT): KSE-100: Bullish momentum to continue

The index opened on a positive note and faced a bullish session amidst heavy volumes. The local bourse posted an intraday high of 610pts and concluded with a gain of 396pts to settle at 40,816pts. The volumes clocked in the last trading session were comparatively lower than the previous trading session. Despite trading 3.6% below 200-period moving average, the momentum oscillator has set a new 14-period high. This is a bullish divergence. Volatility is extremely high when compared to the average volatility over the last 10 trading sessions. There seems a possibility that volatility could decrease and the Index could stabilize in near future.

The chart formation depicts that the index may find initial support near 40,400. A break below mentioned support can result into further weakness towards 40,000 and 39,700pts level. Alternatively, the index can face resistance near 41,100pts initially and then head towards 41,400 and 41,800 area. It is recommended to accumulate positions on weakness with risk defined below support zone.