Karachi: The KSE-100 index experienced a significant downturn in Monday's trading session, falling sharply below its 50-day moving average (DMA) as bearish pressures mounted. The index closed at 77,084, shedding 1,141 points, amidst increased trading activity with volumes rising to 501 million shares compared to the previous session’s 443 million.
According to JS Global, the market's downward trajectory was accentuated by the index's fall below the critical 50-DMA, suggesting potential for further declines. Analysts at JS Global point out that the next support level is expected at 76,861, with a possibility of extending down to 75,662 if the bearish trend continues. Resistance is anticipated at the 50-DMA mark of 77,503, challenging any potential recoveries. Both the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) indicators support the negative outlook, with downward trends that bolster the case for a continued bearish market stance.
Investors are advised to consider selling below the 76,861 threshold to mitigate potential losses. Established support and resistance levels are further cited at 76,575 and 77,962, respectively, guiding trading strategies in the face of ongoing market volatility.