Karachi, January 17, 2023 (PPI-OT): KSE-100: Bearish sentiment persists

The index opened on a slightly positive note and faced a bearish trading session. The local bourse posted an intraday low of 663pts and concluded with a loss of 602pts to settle at 39,721pts. The volumes clocked in the last trading session were comparatively lower than the previous trading session. The index is currently sustaining below minor and major moving averages on daily charts. According to momentum indicators, the index is showing signs of weakness which could drag the index downward.

The chart formation depicts that the index may find initial support near 39,500. A break below mentioned support can result into further weakness towards 39,200 and 39,000pts level. Alternatively, the index can face resistance near 40,100pts initially and then head towards 40,500 and 40,800 area. It is recommended to trade with a cautious approach.