Karachi: The KSE100 index witnessed a pronounced decline, closing 1,964 points lower at 165,124, after opening negatively and maintaining a downward trajectory throughout the trading session. Trading volumes also decreased by approximately 5% compared to the previous session, indicating weakened market participation.

According to AKD Securities Limited, the index closed 5.2% below the lower Bollinger Band, suggesting the potential for further downside. However, a short-term rebound towards the bands might occur. The Bollinger Bands are currently 57.85% narrower than their typical width, signaling reduced volatility relative to the index's usual range. This contraction implies a heightened likelihood of a sharp price move and an increase in volatility in the near future. The bands have been compressed for ten consecutive trading sessions, increasing the probability of a significant move the longer this narrow range endures.

Technically, immediate support is identified at 165,000, with a breach below this level potentially extending the decline towards 163,900 and 162,700. Resistance is anticipated around 166,500, followed by 167,600 and 168,200. It is advised to accumulate positions on dips with risk defined below the support zone.