Karachi, The Karachi Stock Exchange-100 Index experienced a bearish trading session, marked by a significant drop in points and the appearance of a Dragonfly Doji, indicating potential market uncertainty.

According to AKD Securities Limited, the KSE-100 Index opened negatively and faced a challenging session, posting a low of 2,678 points. The session concluded with a loss of 2,534 points, settling at 59,171 points. This session saw trading volumes higher than those in the previous session. The Moving Average Convergence Divergence (MACD), a trend-following momentum indicator, is showing signs of weakness, as it is trading below its signal line. The MACD crossed below its signal line five trading sessions ago, and since then, the Index has declined by 9.25%, ranging from a high of 66,587 to a low of 59,027 points.

The technical chart suggests that the index may find initial support near the 58,800 points level. A break below this support could lead to further weakness, potentially reaching down to 58,400 and 57,900 points. On the flip side, the index might encounter initial resistance near 59,800 points, and if surpassed, it could head towards the 60,500 and 61,100 points area.

Given these observations, the analysis recommends a cautious approach to trading. Investors are advised to accumulate positions on weakness, reflecting a strategy of buying stocks at low points in anticipation of future market recovery or gains.