Is NEPSE breaking out or correcting? Index at 2745.65 (+27.49 pts). 0/330 MACD above zero, breadth 1.00 A/D ratio. Breakout and correction signals analyzed.
Breakout or Correction? — 2026-05-08
NEPSE closed at 2745.65, up +27.49 points (+1.01%) from the previous close of 2718.16. The index traded between 2717.96 (low) and 2745.79 (high), opening at 2719.64.
Is today's NEPSE action a sign of breakout momentum or a correction? Let's analyze the evidence.
Breakout Signals
- More losers (20) than gainers (20) — bearish breadth
- Only 0/17 MACD above zero — weak momentum
- More bearish (0) than bullish (0) crosses
- Top gainer volume is thin — move may not sustain
Correction Signals
- Limited bearish divergence
- Only 0/17 expanding histograms — momentum fading
- Gaining sector is broader
Key Levels
- TVCL: Support Rs. 496, Resistance Rs. 561.3
- HFIN: Support Rs. 995.3, Resistance Rs. 1076
- SKHEL: Support Rs. 1256.2, Resistance Rs. 1369
Verdict
NEUTRAL — mixed signals suggest consolidation rather than a clear directional move.