Pakistan Stock Market Braces For Further Decline

Islamabad: The Pakistan Stock Exchange (PSX) benchmark KSE-100 index experienced a turbulent trading session, closing at 157,555, a decrease of 483 points. Trading volume contracted to 1,666 million shares compared to 2,048 million shares the previous day. Analysts predict the index will likely test support at 157,245, yesterday’s low. A breach below this level could push the index towards 156,261 and subsequently 154,360.

Any upward movement is expected to encounter resistance between 157,880 and 158,850. Weakening technical indicators, such as the Relative Strength Index (RSI) and Stochastic Oscillator, suggest a cautious approach. Investors are advised to remain vigilant at higher levels and seek buying opportunities during dips. Additional support and resistance levels are identified at 156,917 and 158,521, respectively.

Regarding individual stocks, ISL is anticipated to experience continued correction. A “sell on strength” strategy is recommended, targeting Rs119.00 and Rs115.22, with a stop-loss set at Rs126.50. Conversely, ATRL shows limited downside potential. A “buy on dips” strategy is suggested for ATRL, targeting Rs681.00 and Rs685.50, with a stop-loss at Rs661.38. This analysis is based on information from JS Global.