KSE-100 Continues Downward Trajectory, Faces Possible Corrective Trend

Karachi, The KSE-100 index sustained its downward momentum, closing at 74,836, down 681 points from the previous day. The market's volatility continues with a significant decline in trading volumes, reflecting growing investor caution amid uncertain market conditions.

According to JS Global, the KSE-100 index is expected to test its recent low of 74,760, and a break below this level could lead to further declines targeting 74,076 and potentially 73,405. Conversely, any upward movement will encounter resistance between 75,080 and 75,420, with an additional barrier at 76,248. The technical indicators, including the Stochastic Oscillator and the RSI, have shifted downwards, suggesting a sell signal and supporting a bearish outlook for the market.

Investors are advised to adopt a cautious strategy, with recommendations to sell below the 74,760 mark. Current support and resistance levels are identified at 74,509 and 75,415, respectively. Additional market analysis from JS Global indicates specific strategies for stocks like PSO, where a 'Sell on Strength' strategy is recommended with target prices at Rs168.80 and Rs165.90, and a stop loss at Rs175.57. For HCAR, a 'Buy on dips' approach is suggested, targeting Rs326.40 and Rs333.73, with a stop loss at Rs304.50.