Karachi: The KSE-100 index closed below its 20-day Simple Moving Average (SMA), reflecting a bearish trend that dominated the trading session. The index experienced a significant drop, shedding 1,505 points to close at 120,466. This decline occurred as trading volume fell by 40% compared to the previous session.

Throughout the session, the index was under consistent downward pressure, reaching an intraday low of 1,553 points. The Relative Strength Index (RSI) stands at 52.34, marking the lowest level in the past 14 sessions. This suggests a potential shift toward a short-term sideways movement, as the RSI remains above the neutral level.

In the past 10 sessions, the index recorded 4 gains and 6 losses, highlighting the prevailing market volatility. The current chart indicates immediate support at 119,800. A breach of this level could lead to further declines toward 119,300 and 118,700.

Resistance is anticipated around 121,300, with additional potential targets at 122,800 and 123,300. Market analysts recommend a cautious trading approach, advising investors to accumulate positions during market weakness while managing risk below the support zone.

The technical analysis underscores the need for vigilance in navigating the current market landscape, given the fluctuating performance and significant drop in trading activity.