Karachi, October 17, 2022 (PPI-OT): KSE-100: Range bound activity amid low volumes

The index opened on a negative note and traded in a thin range throughout the last trading session. The local bourse posted an intraday high of 153pts, a low of 190pts and concluded with a loss of 137pts to settle at 41,949pts. The volumes clocked in the last trading session were marginally higher than the previous trading session. The index is trading below 50-SMA (Simple Moving Average) on daily chart. Among the strength indicators, RSI (Relative Strength Index) is currently trading near 53.55 which is still above the neutral level. The MACD is bullish since it is trading above its signal line. The index level has increased 1.45% and has ranged from a high of 42,441 to a low of 41,329, since the MACD crossed its moving average.

The chart formation depicts that the index may find initial support near 41,900. A break below mentioned support can result into further weakness towards 41,700 and 41,400pts level. Alternatively, the index can face resistance near 42,400pts initially and then head towards 42,800 and 43,000 area. It is recommended to accumulate positions on weakness with risk defined below support zone.