Karachi: The KSE-100 index experienced a significant downturn, closing with a decline of 2,063 points at the 160,101 level, continuing a trend driven by bearish market sentiment. Trading volume slightly increased, with 1,019 million shares exchanged compared to the previous 1,007 million. Analysts predict that the index may soon test the support level at the 50-day moving average (DMA) of 158,736. If the index falls below this threshold, it could target the recent low of 157,678. On the upside, resistance is anticipated at the 30-DMA, currently at 163,163.

The market indicators, including the Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD), have shown continued declines, further endorsing a negative outlook. Given these conditions, experts advise investors to exercise caution at the current level. The identified support and resistance for the index stand at 158,810 and 162,386, respectively.

In specific stocks, Pakistan State Oil (PSO) is expected to find support at the 50-DMA. The suggested strategy for investors is to 'buy on dips,' with target prices of Rs451.51 and Rs463.58, while maintaining a stop loss at Rs442.29.

Meanwhile, for Pakistan Petroleum Limited (PPL), a strategy of 'sell on strength' is advised, as the stock falls below its 50-DMA. The target prices are Rs183.39 and Rs178.90, with a stop loss set at Rs190.23.

These insights are provided by JS Global, emphasizing the importance of strategic planning in navigating the current market fluctuations.