Karachi: The KSE-100 index experienced a notable decline, closing below its 20-day simple moving average (SMA) after facing persistent selling pressure throughout the trading session. The index recorded an intraday low of 2,158 points and ended the day with a decline of 1,963 points at 164,590.

Trading volumes saw a significant reduction, dropping by 33% compared to the previous session, indicating a slowdown in investor participation. Despite the recent pullback, the index remains 26.5% above its 200-day moving average, suggesting that the longer-term upward trend is still intact.

Market volatility continues to surpass the 10-session average, although a potential decline in volatility could lead to near-term stability. Volume indicators point to balanced inflows and outflows, maintaining a neutral market stance.

Technically, the index has immediate support at 164,400. A breach of this level could result in further declines, targeting 163,400 and 162,800. On the resistance front, the index may face challenges around 165,100, with further resistance at 165,800 and 166,700.

Traders are advised to adopt a cautious approach, with recommendations to accumulate positions during periods of market weakness.