The research house is holding on its ‘LONG’ positions for FKLI.
On Monday, the FKLI resorted to mild profit taking, pulling back 7.5 points to settle at 1,595.50 points – keeping its position above the 1,593.50-point immediate support. The index began the session on positive sentiment, gapping up and opening higher at 1,604 points. After touching the session’s high of 1,605 points, it progressed lower throughout the session and reached the low of 1,593.50 points before the close. The latest price action saw the bulls taking a breather after rallying towards the 1,600-point level. The index may consolidate sideways near the immediate support.
If the immediate support gives way, the index may retreat towards the 50-day SMA line and retest the 1,566.50-point lower support. The research house expects strong buying interest to emerge near the 50-day SMA line. Since the index is trading well above the 50-day SMA line now, they opined that the bullish structure remains intact. Hence, RHB Research is keeping to its positive trading bias.
The research house advises traders to stick to the long positions initiated at 1,567.50 points, or the closing level of 16 March. To manage trading risks, the initial stop-loss is fixed at 1,566.50 points. The immediate support stays at 1,593.50 points (17 March’s high), followed by 1,566.50 points, or the low of 24 February. The immediate resistance remains at 1,620 points, followed by 1,634.50 points, or the high of 12 March 2021.
