Karachi: The KSE-100 index witnessed a significant downturn, closing at 80,118, reflecting a drop of 1,722 points day-over-day. Trading volumes increased slightly, recording 479 million shares compared to the previous session's 470 million shares.
According to JS Global, the index experienced a bearish pattern known as an Engulfing Bear, prompting sell signals from momentum indicators. The report forecasts a testing period for the index, with a critical support level at 79,812. A breach below this could push the index towards the 30-day moving average at 77,863 and potentially down to the 50-day moving average at 76,448. On the flip side, any recovery attempt will encounter resistance between 80,620 and 81,430 levels.
Investors are advised to maintain a cautious approach due to the current market volatility. Key support and resistance levels are pegged at 79,307 and 81,434, respectively, setting the stage for potential pivotal movements in upcoming trading sessions.