Karachi: The Pakistan Stock Exchange's (PSX) benchmark KSE-100 index witnessed a further decline, closing at 166,145, a drop of 1,497 points from the previous day. Trading volumes decreased to 593 million shares from 776 million, indicating a trend of reduced market activity.

Market analysts expect the index to test support levels between 165,950 and 166,120. A breach below these levels could see the index targeting the 163,898 mark. On the upside, resistance is anticipated between 166,800 and 168,160. Technical indicators such as the Relative Strength Index (RSI) and the Stochastic Oscillator have declined, supporting a cautious outlook for the market.

Investors are advised to remain cautious and consider buying during market dips. The identified support and resistance levels are at 165,453 and 167,499, respectively.

In sector-specific strategies, International Steels Limited (ISL) shows support at the 200-day moving average, with a suggested strategy of 'buy on dips'. The targets for ISL are set at Rs98.95 and Rs102.93, with a stop-loss at Rs94.13.

For Oil and Gas Development Company (OGDC), a bullish formation is noted. The recommended strategy is also 'buy on dips', aiming for Rs273.31 and Rs281.60, with a stop-loss at Rs264.91.

The analysis and recommendations are provided by JS Global, as traders navigate the current market environment.