Broad Decline in the Stock Market on Wednesday, NEPSE Falls by 90.73 Points

On Wednesday, the NEPSE index declined by 90.73 points, settling at 2,739.46 points.

Trading Summary: Total shares traded amounted to over NPR 12.92 billion.

Sector Performance: All sector indices declined, while 5 companies traded at a positive circuit level.

Market Volatility: The NEPSE index, which had dropped below the psychological level of 3,000 to under 2,700, climbed back above 2,800 after a 127-point gain on Monday.

Top Trading Companies: Nepal Finance led with NPR 305.2 million in trades, followed by Excel Development Bank in second place and Himalayan Reinsurance in third.

This market volatility has further affected investor sentiment.

Chart Analysis:

Price Action:

• The chart shows green and red candles. Green candles indicate a bullish trend (closing price higher than the opening price), while red candles indicate a bearish trend (price decline).

• Recent days have shown a decline, with a small bounce following some drops, but prices have fallen again.

Support and Resistance:

• The chart suggests there is some support in the 2,700 to 2,800 range, where the market has found support once more.

• Resistance levels are around 2,900 and 3,000, where the market previously halted.

Trading Volume:

• The bar chart below shows the trading volume. Recent days have seen lower-than-average trading volume, indicating less activity or uncertainty in the market.

Trend:

• The market currently appears to be in a sideways or consolidation phase. To advance further, the market needs to break through a strong support or resistance level.

Conclusion:

Potential Movement: The market may see some immediate volatility. If stability is maintained at the support level, the market could move upward again, but breaking through the resistance level may prove challenging.

Strategy: Investors might consider adopting a wait-and-see approach until a clear signal emerges in the market direction.