NEPSE Closes Green; Hydropower and Investment Sectors Shine

Kathmandu – The Nepal Stock Exchange (NEPSE) closed in the green on Sunday, the first trading day of the week, continuing the recovery seen last Thursday. The NEPSE index rose by 3.58 points to settle at 2661.60 points. Similarly, the Sensitive Index climbed 1.81 points, the Float Index gained 0.07 points, and the Sensitive Float Index increased by 0.45 points.

There was also a notable surge in turnover. Compared to Thursday’s NPR 7.87 billion, Sunday’s market saw a massive turnover of over NPR 10.87 billion, with shares of 314 companies traded more than 89,000 times, totaling over 28.4 million shares exchanged.

Nepal Microinsurance and Crest Micro Life Insurance shares once again hit the circuit level. Nepal Microinsurance's stock jumped by NPR 94.70 to close at NPR 1042.50, while Crest Micro Life Insurance soared by NPR 78.30 to NPR 861.90.
Other notable gainers included Bhugol Energy Development, Ngadi Group Power, Sanima Mai Hydropower, and Arun Valley Power Development Company — all posting gains of over 7%.
On the downside, VIN Nepal Laghubitta became the day’s biggest loser, plunging by 10%.

In terms of trading volume, Ngadi Group Power led the chart with transactions worth over NPR 861.7 million. NRN Infrastructure and Radhi Vidyut Company followed, each recording turnover above NPR 560 million.

Out of 13 sub-indices, 6 subgroups closed higher, while 7 ended lower. The Investment subgroup led the gainers, rising by 1.77%, followed by Hydropower and Trading, which each posted over 1% gains. On the flip side, the Finance subgroup dragged, slipping by 1.05%.

Technical Analysis: Market Holding Support, Awaiting Clear Breakout

The NEPSE index appears to have formed a double-bottom-like support structure in recent sessions. Last session’s doji candle at support indicated hesitation but also a refusal to fall further.

Today (Sunday), the market tried — but failed — to break above the previous session’s doji high. However, the important takeaway is that NEPSE is holding near support, and turnover has significantly increased — a classic sign that a reversal from support could be starting.

NEPSE touched the middle Bollinger Band but couldn't clearly break above it yet, meaning the market still lacks a decisive breakout.
Politically, the market is optimistic about the upcoming Cabinet meeting tomorrow, where a new Governor appointment is expected. If the appointment is positive, technically the market looks ready for a support-based breakout.

Broker Analysis: Buying Interest Rising

Broker transaction data shows buying appetite is increasing.

• Broker 58 had the highest transaction volume, recording over NPR 1.63 billion worth of trades. However, sales slightly outpaced buys, hinting at some profit booking.

• Broker 45 and Broker 34 showed strong buying interest, with buy-sell ratios above 1, signaling investor confidence.

• Broker 57 posted the highest buy/sell ratio of 1.17, suggesting retail investors are becoming more aggressive on the buying side.

Heatmap Analysis: Hydropower and Investment Spark the Rally

While NEPSE showed only modest overall gains, sectoral movements were very different underneath.

• Hydropower sector dominated —
  Ngadi Group Power (+7.55%), Upper Hewakhola (+7.07%), and Radhi Vidyut (+7.12%) all posted sharp gains.

• Investment sector also shined —
  Citizen Investment Trust (+8.05%) and Nepal Investment Bank (+4.77%) saw strong jumps.

• The Life Insurance sector was another bright spot, with National Life Insurance rising by 5.08%.

However, not all sectors joined the party:

• Banking sector underperformed —
  Kumari Bank (-1.81%) and Nepal Investment Bank (-1.12%) dragged the sector down.

• Microfinance sector also struggled, with many companies closing deep in the red.

Other sectors like Hotels, Trading, and Others showed mixed performance.

NEPSE has held strong at the support area, backed by a surge in buying volume.
However, until the major banking stocks show strength, a clear bullish breakout remains uncertain.
Still, the positive momentum from Hydropower and Investment sectors is keeping market optimism alive.

Tomorrow’s political event — Governor appointment — could be the real game-changer.