Is NEPSE breaking out or correcting? Index at 2730.17 (-10.08 pts). 0/291 MACD above zero, breadth 0.95 A/D ratio. Breakout and correction signals analyzed.
Breakout or Correction? — 2026-05-14
NEPSE closed at 2730.17, down -10.08 points (-0.37%) from the previous close of 2740.25. The index traded between 2717.45 (low) and 2743.25 (high), opening at 2743.25.
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 (19) — bearish breadth
- Only 0/19 MACD above zero — weak momentum
- More bearish (0) than bullish (0) crosses
- Top gainer UNHPL has strong volume (306,888)
Correction Signals
- Limited bearish divergence
- Only 0/19 expanding histograms — momentum fading
- More stocks in declining sector (HYDRO POWER: 9) than gaining (HYDRO POWER: 8)
Key Levels
- UNHPL: Support Rs. 472, Resistance Rs. 534
- CREST: Support Rs. 1080, Resistance Rs. 1208
- NIBLSTF: Support Rs. 9.04, Resistance Rs. 9.59
Verdict
Evidence tilts toward CORRECTION — negative breadth and weak MACD suggest further downside risk.