Karachi: The KSE-100 Index witnessed range-bound activity on the trading floor, opening with an initial positive move but eventually closing 48 points lower at 177,323. The session saw the index reach an intraday high of 1,279 points, followed by a retreat to a low of 174 points. Market participation showed signs of weakening, as trading volumes decreased by approximately 20% compared to the previous session.

According to AKD Securities Limited, the Moving Average Convergence Divergence (MACD) indicator remains bearish, trading below its signal line for the fifth consecutive session. Despite a 0.27% gain since the bearish crossover, the index has been confined to a range between 178,942 and 176,111. Over the past ten sessions, the index recorded two bullish closes against eight bearish or negative closes, indicating a persistent selling pressure.

The index concluded the session 36.0% above the lower Bollinger Band, with the bands currently 54.90% narrower than usual, pointing to a significantly compressed volatility period. This narrow band indicates a consolidation phase, and a prolonged compression could lead to an expansion in volatility, potentially resulting in a sharp directional price movement in the near term.

From a technical perspective, immediate support is identified at 176,500, with further declines potentially extending toward 175,500 and 174,500 if breached. Conversely, resistance is anticipated around 177,800, followed by 178,800 and 179,500. A cautious trading approach is recommended, with positions accumulated on dips and risks defined below the support zone.