Karachi: The KSE-100 index experienced a tumultuous trading session, closing with a significant drop of 1,579 points at 166,174. The session was marked by volatility, with the index reaching an intraday high of 767 points and a low of 1,755 points. Despite the fluctuations, trading volumes showed minimal change, inching up by only 1% compared to the previous session.

The KSE-100 closed notably 20.9% below the upper Bollinger Band, while the bands themselves expanded to 69.03% wider than usual. This indicates an elevated level of volatility, suggesting that the market may begin to stabilize, trading within a defined range in the near future. The Bollinger Bands have maintained this broader range for the past three sessions, further emphasizing the current market instability.

In terms of technical analysis, immediate support for the index is identified at 165,800. A breach below this threshold could potentially lead to a further decline towards 165,400 and 165,000. On the upside, resistance levels are observed at 167,300, with subsequent barriers at 168,500 and 169,200. Market experts advise investors to consider accumulating on dips, with a defined risk strategy below the support level.

The report from AKD Securities Limited underlines the need for cautious trading amid the ongoing market uncertainty.