The index opened with a gap of 100pts and continued to trade in green zone throughout the last trading session with a decreased traded volumes of 169.8Mn shares. During the day, the index touched a high of 1,206pts and closed with a gain of 1,008pts.

The index has been trading above it’s 200-SMA (Simple Moving Average) since July 2020 and daily parabolic SAR (Stop and Reverse) is currently appearing above the current level of the index on daily and weekly time frame charts.

KSE100 closed above the lower band by 9.7%. Bollinger Bands are 43.99% wider than normal. The large width of the bands suggest high volatility as compared to KSE100’s normal range.

The chart formation reflects that index could find initial support near 43,500. A break below mentioned support could result in further weakness towards 43,200 and 42,900 level.

On the other hand, the index could face resistance near 44,500 level initially and above, it may trade between 45,000 and 45,500 area.

Among the strength indicators, daily RSI (14) stands at 38.5 and has posted a return of (38.3%) as compared to previous trading session.

It is recommended to accumulate positions on weakness with risk defined below 42,800.

Key trading ideas for the day

MLCF: The scrip closed on a positive note. Daily RSI(14) is trading at 47.8. The scrip is trading above 100-SMA (Simple Moving Average). The scrip seems to continue upward move.

NCL: The scrip closed on a positive note. The scrip is trading above 100-SMA (Simple Moving Average) and has bounced from lower Bollinger band. Current formation suggests that NCL could surge in near term.

NRSL: The scrip closed above major moving averages on daily chart. Current chart formation suggests that NRSL could perform well in coming trading sessions.

Courtesy – BMA Capital Management Ltd.