Karachi: The KSE-100 index continued its downward trajectory, closing at 173,150 points, marking a decline of 1,304 points from the previous day. Trading volumes decreased to 716 million shares compared to 773 million shares traded in the previous session. The index is approaching a critical support level at 171,693, with potential further declines targeting 169,584 if breached. Resistance is anticipated between the 173,650 and 176,150 levels, with additional resistance at the 50-day moving average of 179,488. Indicators suggest the market may be oversold, indicating limited downside risk. Investors are advised to remain cautious, particularly during market upswings.

According to JS Global, the support and resistance levels are currently at 171,185 and 175,623, respectively. The report recommends a 'buy on dips' strategy for Bank of Punjab (BOP) with target prices set at Rs35.71 and Rs37.05 and a stop-loss at Rs33.20. For D.G. Khan Cement Company (DGKC), a 'buy on dips' approach is also advised, targeting Rs216.40 and Rs221.76 with a stop-loss at Rs208.51. The technical indicators, including the Stochastic Oscillator and the Relative Strength Index (RSI), show oversold conditions, suggesting a cautious approach for investors in the coming sessions.