NEPSE Indicates Bullish Divergence, Market Could See Reversal

Published on September 3, 2025

Kathmandu, September 3, 2025 (Bhadra 18, 2082):
The Nepal Stock Exchange (NEPSE) index closed at 2,726.33 points, down by 15.64 points (-0.57%) today, with a total turnover of NPR 4.72 billion. Despite the decline in the benchmark index, technical indicators suggest that the market may be nearing a potential reversal phase.

One of the most significant signals is the bullish divergence observed on the Relative Strength Index (RSI – 14). Currently, RSI stands at 39.53, slightly above the oversold zone, and is forming a higher low. In contrast, the NEPSE index has been forming lower lows in recent trading sessions.

This divergence pattern is widely considered a bullish signal in technical analysis. It typically occurs when momentum indicators, like RSI, move in the opposite direction of price trends — implying that downward selling pressure is weakening, and buyers could soon regain control.

Market analysts suggest that this setup indicates potential accumulation at lower levels, signaling that institutional and retail investors may be positioning ahead of a rebound. Historically, such bullish divergences in NEPSE have often preceded short- to medium-term rallies.

However, analysts also caution that confirmation is crucial. If NEPSE sustains above the 2,700-point support zone and RSI continues to climb above 50, it could validate the bullish reversal. Conversely, a breakdown below 2,680 pointsmight delay the recovery and extend consolidation.

Investor sentiment remains cautious amid recent volatility, but the bullish divergence has injected a degree of optimism in the market. Traders and investors are closely watching for confirmation in the coming sessions.

Key Highlights:

NEPSE closes at 2,726.33 points (-0.57%).
RSI (14) at 39.53 shows higher low, while index makes lower low.
Clear sign of bullish divergence, indicating possible trend reversal.
Support at 2,700 points crucial for confirming upside momentum.

If sustained, this divergence could mark the beginning of a short-term bullish rally, offering opportunities for swing traders and medium-term investors.

How Smart Investors Turn Loans into Wealth

How Smart Investors Turn Loans into Wealth For many households, loans are seen as a financial burden. But smart investors are turning them into a tool for wealth creation, particularly in real estate. By leveraging borrowed money to purchase property, investors are building portfolios that generate income, appreciate in value, and reduce tax liabilities.

NEPSE Indicates Bullish Divergence, Market Could See Reversal

The Nepal Stock Exchange (NEPSE) closed at 2,726.33 points on Wednesday, down by 15.64 points (-0.57%) with a total turnover of NPR 4.72 billion. Despite the decline, technical indicators show signs of a potential reversal as the Relative Strength Index (RSI 14) stands at 39.53, forming a higher low, while the NEPSE index itself has been making lower lows. This pattern indicates a bullish divergence, suggesting that selling pressure is weakening and a short-term rally could be on the horizon. Analysts highlight that sustaining above the 2,700-point level and an RSI move above 50 would confirm the bullish momentum, while a breakdown below 2,680 points may delay recovery. Overall, the divergence has brought cautious optimism among investors, signaling possible market upside in the coming sessions.

NEPSE’s Dance on the Rhythm of Margin Lending

NEPSE’s Dance on the Rhythm of Margin Lending In the Nepalese stock market (NEPSE), many retail investors often feel frustrated when prices don’t behave as anticipated. Despite optimism, the reality is that prices are heavily influenced by both industry trends and underlying fundamentals. Let’s break down the main reasons why stock prices in NEPSE are not aligning with expectations.

The Many Faces of Money’s Power

Article By : Dipesh Ghimire https://www.facebook.com/dipeshakanchho The Many Faces of Money’s Power Money has always been more than just a medium of exchange. In modern society, it serves as an anchor that shapes lifestyles, opportunities, relationships, and even the direction of nations. While its value is often measured in numbers, its true power lies in the choices it creates and the influence it spreads across different layers of human life.

Building Your Own Financial Plan: A Complete Guide

Building Your Own Financial Plan: A Complete Guide About the Author : Dipesh Ghimire, a journalist focused on Nepal’s economy, has over 15 years of experience in the share market. Managing money wisely has become one of the most important skills in today’s unpredictable world. A financial plan is essentially your personal roadmap that shows how to balance spending, saving, debt repayment, and investments in order to meet both immediate needs and long-term ambitions. Unlike a simple budget or a list of numbers, a financial plan connects your current reality with your future goals. Whether you’re a student just starting to earn, a salaried professional, or even running a small business, the steps remain surprisingly similar.

Hydropower IPO Deadlock Threatens Private Sector Investment

Article By : Dipesh Ghimire Hydropower IPO Deadlock Threatens Private Sector Investment Kathmandu – Hydropower projects in Nepal, once considered secure for private investors, are now facing an unprecedented financial bottleneck. For years, promoters, banks, and the general public all contributed to project financing: promoters injected equity, banks provided loans, and locals participated through IPOs. Projects generally raised funds, though delays and construction risks were common. But recently, policy hurdles and regulatory indecision have made IPO approval—the final step of financing—far more uncertain. The Securities Board of Nepal (SEBON) has withheld IPO clearance for dozens of hydropower companies, leaving project developers stuck and local investors frustrated.

NRB Revises Concessional Loan Rules, Borrower Details to Go Public

NRB Revises Concessional Loan Rules, Borrower Details to Go Public Nepal Rastra Bank has rolled out sweeping changes in the concessional loan regime, directing banks and financial institutions to publish the names of beneficiaries every quarter. The central bank’s new instruction, issued through amendments to the Unified Directives, is aimed at increasing transparency and ensuring that concessional loans reach their intended sectors. Under the new rule, banks must post borrower lists separately for those who received loans under the earlier 2018 (2075 BS) framework and those who fall under the newly revised 2025 (2082 BS) procedure. These lists must be made public on the institutions’ official websites every three months. The central bank also clarified that the government will reimburse interest subsidies, which will be treated as zero risk-weight assets while calculating banks’ capital adequacy ratios.

Nabil Balanced Fund-3 Declares 13% Cash Dividend; Book-Closure Set for Bhadra 22

Market analysts suggest that the combination of a solid 13% dividend payout and technical bullishness may drive near-term demand for the fund’s units. With the stock trading slightly below its NAV, investors could view NBF3 as an attractive opportunity for income and stability ahead of the book-closure deadline.