Karachi: The KSE-100 index of the Pakistan Stock Exchange experienced a significant decline, losing 1,379 points to close at 114,153, as bears took control of the market. The session's trading volume was 449 million shares, a decrease from the previous 531 million shares. The index's drop below the 50-day and 30-day moving averages suggests potential further resistance at 114,257 and 115,342 levels, respectively. Analysts caution that a further decline below 112,891 could lead to a retest of the recent low at 110,104.

Technical indicators, including the Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD), reflect market weakness, prompting a recommendation for investors to remain cautious at elevated levels and consider buying on dips. Support and resistance points are identified at 112,999 and 115,200.

In sector-specific insights, Pakistan State Oil (PSO) shows a stable recovery trend with a strategy to 'buy on dips,' targeting price points of Rs391.90 and Rs402.07, with a stop-loss at Rs380.61. Meanwhile, Maple Leaf Cement Factory (MLCF) is progressing towards its recent high, with a similar 'buy on dips' strategy targeting Rs62.06 and Rs63.81, and a stop-loss set at Rs59.25.

These insights are provided by JS Global, reflecting a cautious yet strategic approach in the current market environment.