Karachi: The KSE-100 Index, a benchmark for the Pakistan Stock Exchange, experienced a decline, closing at 135,940, down 563 points from its previous high of 137,748. Trading volumes increased slightly, with 879 million shares exchanged compared to 841 million in the prior session. Despite this negative closing, the index has maintained a higher high and higher low, suggesting an ongoing bullish trend.

Market analysts note that a short-term correction is on the horizon, as technical indicators such as the Stochastic Oscillator have signaled a sell, and the Relative Strength Index (RSI) remains in overbought territory. A drop below the 135,826 mark could see the index targeting 135,037 initially, with a subsequent target of 132,589.

Resistance is anticipated at the recent high of 137,748, and traders are advised to adopt a cautious approach given the current levels. The support and resistance for the index are identified at 135,261 and 137,183, respectively.

In specific stocks, Pakistan State Oil (PSO) has reached a support level, with a strategy of 'buy on dips' aiming for price targets of Rs380.31 and Rs386.12, and a stop-loss at Rs372.41. Similarly, DG Khan Cement (DGKC) is expected to continue its consolidation, with a 'buy on dips' strategy targeting Rs176.55 and Rs179.06, and a stop-loss set at Rs167.64.

These strategic insights are based on technical analysis provided by JS Global.