Karachi, May 02, 2023 (PPI-OT): KSE-100: Profit taking witnessed

The index opened on a positive note and remained bullish throughout the last trading session. The local bourse posted an intraday high of 327pts and concluded with a gain of 117pts to settle at 41,581pts. The volumes clocked in the last trading session were comparatively higher than the previous trading session. The Index is currently sustaining above minor and major moving averages on daily chart. Daily parabolic SAR (Stop and Reverse) is currently appearing below the current level of the Index. Relative Strength Index is currently trading near an overbought region. The MACD is bullish since it is trading above its signal line. The MACD crossed above its signal line 7 trading sessions ago. Since the MACD crossed its moving average, the Index has increased 3.42% and has ranged from a high of 41,791 to a low of 40,159.

The chart formation depicts that the index may find initial support near 41,100. A break below mentioned support can result into further weakness towards 40,800 and 40,500pts level. Alternatively, the index can face resistance near 41,800pts initially and then head towards 42,200 and 42,500 area. It is recommended to accumulate positions on weakness with risk defined below support zone.