Is NEPSE breaking out or correcting? Index at 2570.18 (-30.60 pts). 0/0 MACD above zero, breadth 1.00 A/D ratio. Breakout and correction signals analyzed.
Breakout or Correction? — 2026-07-13
NEPSE closed at 2570.18, down -30.60 points (-1.18%) from the previous close of 2600.78. The index traded between 2566.27 (low) and 2607.04 (high), opening at 2599.65.
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 0/0 MACD above zero — weak momentum
- More bearish (0) than bullish (0) crosses
- Top gainer SLBSL has strong volume (10,929)
Correction Signals
- Limited bearish divergence
- 0 expanding — momentum intact
- More stocks in declining sector (HYDRO POWER: 14) than gaining (MICROFINANCE: 9)
Key Levels
- SLBSL: Support Rs. 1093, Resistance Rs. 1197
- ANLB: Support Rs. 6736.8, Resistance Rs. 6736.8
- JFL: Support Rs. 377, Resistance Rs. 387.4
Verdict
NEUTRAL — mixed signals suggest consolidation rather than a clear directional move.