Karachi: The KSE-100 index witnessed a notable decline in its latest trading session, closing down by 440 points at 78,030. This downturn saw the index fall below its 30-day moving average (30-DMA), a key technical marker, indicating a bearish outlook for the market.

According to JS Global, the market's performance was underpinned by lower trading volumes, which dropped from 327 million shares in the previous session to 278 million shares. The 30-DMA is now poised to act as a ceiling for any potential recovery, capping possible gains at 78,575. Further downside risk is highlighted by the possibility of the index slipping below Friday’s low of 77,921, which could propel it towards the 50-day moving average at 77,063.

The technical indicators reinforce the cautious stance advised by market analysts. Both the Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD) are trending downwards, supporting the prevailing bearish sentiment. Market participants are advised to remain cautious, with critical support and resistance levels identified at 77,777 and 78,426, respectively.