Karachi: The KSE-100 index, a key benchmark of the Pakistan Stock Exchange, experienced a significant decline, shedding 1,140 points to close at 162,164. This drop takes the index below its 30-day moving average (DMA), a technical indicator that will now serve as a resistance level at 163,032. A recovery is anticipated only with a break above this level.

Trading volumes decreased slightly, with 1,007 million shares exchanging hands compared to 1,041 million in the previous session. Market analysts observe that the relative strength index (RSI) and moving average convergence divergence (MACD) indicators are both trending downwards, reinforcing a negative outlook.

A further decrease below 161,767, which was the low recorded in the previous session, could extend the bearish trend, with the next target set at 158,530. The current support and resistance levels are identified at 161,430 and 163,234, respectively.

In sector-specific analysis, Pakistan State Oil (PSO) is approaching its 50-DMA support. Investors are advised to consider a 'buy on dips' strategy with price targets of Rs459.03 and Rs465.85, while maintaining a stop-loss at Rs441.40.

Similarly, D.G. Khan Cement Company Limited (DGKC) is projected to recover, with a 'buy on dips' strategy suggested. Price targets are set at Rs238.99 and Rs243.92, with a stop-loss at Rs231.01.

These insights, provided by JS Global, suggest a cautious approach for investors amid current market conditions.