Is NEPSE breaking out or correcting? Index at 2642.40 (+0.55 pts). 0/0 MACD above zero, breadth 1.00 A/D ratio. Breakout and correction signals analyzed.
Breakout or Correction? — 2026-08-12
NEPSE closed at 2642.40, up +0.55 points (+0.02%) from the previous close of 2641.85. The index traded between 2629.22 (low) and 2648.57 (high), opening at 2641.27.
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 volume is thin — move may not sustain
Correction Signals
- Limited bearish divergence
- 0 expanding — momentum intact
- More stocks in declining sector (HYDRO POWER: 9) than gaining (INVESTMENT: 5)
Key Levels
- ENL: Support Rs. 782.1, Resistance Rs. 848.7
- HIDCL: Support Rs. 250, Resistance Rs. 265
- NRN: Support Rs. 1350, Resistance Rs. 1435
Verdict
NEUTRAL — mixed signals suggest consolidation rather than a clear directional move.