Is NEPSE breaking out or correcting? Index at 2513.42 (-43.89 pts). 0/0 MACD above zero, breadth 1.00 A/D ratio. Breakout and correction signals analyzed.
Breakout or Correction? — 2026-08-31
NEPSE closed at 2513.42, down -43.89 points (-1.72%) from the previous close of 2557.31. The index traded between 2508.49 (low) and 2556.96 (high), opening at 2555.06.
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: 11) than gaining (MANUFACTURING AND PROCESSING: 8)
Key Levels
- ULBSL: Support Rs. 2310, Resistance Rs. 2725
- GCIL: Support Rs. 375, Resistance Rs. 399.4
- PCIL: Support Rs. 615, Resistance Rs. 654
Verdict
NEUTRAL — mixed signals suggest consolidation rather than a clear directional move.