Karachi: The KSE-100 index witnessed a notable decline, closing down by 487 points at 78,084, with trading volumes increasing to 592 million shares from the previous session’s 512 million. The index has fallen below the 50-day moving average, signaling potential restrictions on upward movement and setting the stage for further possible declines.

According to JS Global, the KSE-100 index’s drop below the 50-day moving average (DMA) at 78,465 points suggests an impending resistance level, followed closely by the 30-DMA at 78,524 points. A further drop below 78,078, which was yesterday’s low, could potentially lead to a sharper decline towards 77,460 and may extend down to 76,943. Technical indicators like the Relative Strength Index (RSI) and Stochastic Oscillator are trending downwards, prompting a cautious approach from investors. The support and resistance levels identified are at 77,822 and 78,602, respectively.

Furthermore, individual stock recommendations from JS Global emphasize a “buy on dips” strategy for both Oil and Gas Development Company (OGDC) and Honda Cars (HCAR). OGDC is advised to be bought at dips with targets at Rs136.47 and Rs141.11, and a stop loss at Rs132.31. Similarly, HCAR, which has pulled back from its 200-DMA, targets Rs265.27 and Rs269.99 with a stop loss set at Rs251.80, indicating a potential rebound in these stocks despite broader market pressures.