Karachi: The KSE-100 index experienced a significant drop, closing 1,493 points lower at 173,887, after touching an intraday low of 2,570 points. Trading volumes saw a substantial decrease of approximately 60% compared to the previous session, indicating weakened market participation.

According to AKD Securities Limited, despite the recent decline, the KSE-100 closed 4.8% above the upper Bollinger Band, signaling a potential upside breakout. However, the index is expected to continue trading within its current range due to narrow Bollinger Bands, which are 21.11% narrower than usual, suggesting low volatility. The index remains above its major daily moving averages, indicating a sustained broader bullish bias and the possibility of further gains.

Technical analysis suggests immediate support at 173,500, with a breach potentially leading to further declines toward 172,400 and 171,500. Resistance is anticipated at 176,500, followed by 177,000 and 177,800. Market participants are advised to accumulate positions on dips, with risk management defined below the support zone.