Karachi: In a robust display of market strength, the KSE-100 Index surged by 517 points, closing at a historic 134,300 level, signaling a continuation of bullish momentum. Trading volumes, however, witnessed a decline, standing at 765 million shares compared to the previous count of 942 million shares.

Market analysts suggest that if this upward trajectory persists, the initial target for the index is projected at 135,231, with potential further gains toward 137,549. Conversely, any downward movement might encounter resistance in the 133,650-134,130 range. A break below this could trigger a corrective trend, underscoring the need for caution among investors.

A bearish divergence on the RSI indicator also suggests a cautious approach. Investors are advised to remain vigilant at higher levels and consider waiting for market dips. The established support and resistance levels are currently at 133,976 and 134,778, respectively.

In the sectorial analysis, PSO has completed its corrective phase, prompting a 'buy on dips' strategy with targets set at Rs387.57 and Rs393.04, while a stop-loss is advised at Rs378.01. Meanwhile, HCAR is expected to consolidate above its 200-day moving average, with similar 'buy on dips' recommendations targeting Rs293.90 and Rs298.93, and a stop-loss placed at Rs286.92.

Investors are encouraged to navigate the market with a strategic approach, balancing optimism with caution to capitalize on the current bullish trend.