Karachi: The KSE-100 Index experienced a significant drop on Monday, closing below its 50-day simple moving average (SMA) following a volatile trading session. The index opened positively but soon encountered persistent selling pressure, leading to a sharp decline of 1,636 points, ending the day at 158,465.

Throughout the session, the KSE-100 touched an intraday high of 589 points and a low of 1,794 points. Despite the overall downturn, market activity saw a slight increase, with trading volumes rising by 4% compared to the previous session.

The KSE-100 closed 2.2% below the lower Bollinger Band, suggesting that the ongoing downtrend might persist. However, analysts note that a short-term rebound within the bands is still possible. The Bollinger Bands are 6.56% wider than usual, indicating heightened volatility in the market.

The Relative Strength Index (RSI), a key momentum indicator, registered at 40.94, reflecting weak momentum in the current market conditions. As investors navigate these turbulent times, market analysts remain cautious about the potential for further fluctuations.

The information was sourced from AKD Securities Limited.