The index opened positively and remained bullish throughout the last trading session. The local bourse posted a high of 445pts and concluded with a gain of 419pts to settle at 48,140pts. The volumes witnessed in the last trading session were comparatively higher than the previous trading session. Among the momentum indicators, RSI (Relative Strength Index) is currently at 73.82. MACD is still trading in a positive trajectory.
The MACD crossed above its signal line 12 trading sessions ago. Since the MACD crossed its moving average, the local bourse has increased 4.19%, ranging from a high of 48,166 to a low of 45,733.
The chart formation depicts that the index may find initial support near 47,800. A break below-mentioned support can result in further weakness towards the 47,500 and 47,200pts levels. Alternatively, the index can face resistance near 48,500pts initially and then head towards 48,800 and 49,200 areas. It is recommended to accumulate positions on weakness.
Courtesy – AKD Research