5 Methods to Find S/R on NEPSE
1. Pivot Points
Mathematically calculated from previous day high, low, close. Banking stocks: KBL - PP: Rs.241.3, S1: Rs.236.9, S2: Rs.230.5, R1: Rs.247.7, R2: Rs.252.1. NMB - PP: Rs.267.4, S1: Rs.263.4, R1: Rs.273.8. GBIME - PP: Rs.255.0, S1: Rs.251.9, R1: Rs.260.1. LSL - PP: Rs.235.8, S1: Rs.232.2, R1: Rs.240.7.
2. Moving Average Support
SMA20 = short-term support, SMA50 = medium-term, SMA200 = long-term. Top stocks with price well above all MAs: NHPC (+21.5% vs SMA20), KBL (+19.8%), SJCL (+14.4%), LEC (+13.8%), SHIVM (+12.1%). When price pulls back to these MAs, they act as support.
3. Fibonacci Levels
Key Fibonacci retracements at 23.6%, 38.2%, 50%, and 61.8% of a prior move provide natural S/R. The 61.8% level is the most reliable on NEPSE.
4. Round Numbers
Psychological levels at round numbers: Rs.100, Rs.250, Rs.500, Rs.1000 often act as S/R. KBL near Rs.250, NMB near Rs.270, SHPC near Rs.500 are examples.
5. Volume Profile
Areas where most volume traded create S/R zones. VWAP (Volume Weighted Average Price) provides the fair value level for each stock.