Karachi: The KSE-100 index experienced a significant drop, closing 1,704 points lower at 159,578 after a volatile trading session. The index initially showed promise, hitting an intraday high of 771 points, but later plummeted to a low of 2,065 points. Trading volumes saw a slight increase of 4% from the previous session.

In recent sessions, the market has displayed a predominantly downward trend, with only one positive closing in the last ten sessions. The Relative Strength Index (RSI) stands at 45.49, indicating weak momentum. The Parabolic SAR also signals potential for further decline as it positions above the current index level.

Technically, the index closed below its 50-day Simple Moving Average (SMA), suggesting a possibility of sideways movement. Immediate support is identified at 159,400, and a breach could lead to further declines to 158,700 and 157,200. Resistance levels are estimated at 160,500, 161,200, and 162,000. Market participants are advised to adopt a cautious trading strategy, focusing on accumulating positions during market weakness.