NEPSE Drops 12.84 Points to 2,669.31

On the last trading day of the week, Thursday, the Nepal Stock Exchange (NEPSE) index continued its downward trend. The NEPSE index fell by 12.84 points, closing at 2,669.31. The Sensitive Index, which measures the performance of 'A' class companies, also declined by 0.49 percent.

Today, 95.99 lakh shares of 312 companies were traded, resulting in a total turnover of NPR 4.56 billion. Compared to Wednesday, when the turnover was NPR 5.11 billion, the trading volume has decreased.

In today’s market, the share prices of 175 companies dropped, while only 62 companies saw an increase. Dolti Power Company recorded the highest gain, with its share price rising by 6.90 percent. Similarly, Asian Hydropower and Sindhu Bikas Bank saw gains exceeding 5 percent, while Guardian29 Guardian Micro Life Insurance’s share price rose by more than 4 percent.

On the downside, Mithila Laghubitta and Bhugol Energy Development Company hit a negative circuit, while Garima Samriddhi Yojana’s share price fell by over 8 percent.

Among the sectoral indices, out of 13 groups, only the trading group index rose by 0.26 percent, while all other groups declined. The finance group saw the steepest drop at 1.26 percent, with other groups declining by less than 1 percent.

Analysts note that with the NEPSE index falling below the psychological level of 2,600, the stock market has weakened further. In a short span, the market has dropped over 200 points from its peak of around 2,900. This decline, initially triggered by profit-booking, shows no signs of abating. Investors who had hoped for the market to reach new highs are now adopting a wait-and-see approach.

Market analysts suggest that investors are likely to remain cautious until the market’s future direction becomes clearer.

Technical Analysis

The NEPSE index is currently exhibiting a "lower high and lower low" pattern. According to the chart, the market has fallen from a high of around 2,900 to 2,669. The Ichimoku Cloud indicates support in the 2,650–2,670 range, though there is a risk of the market breaching this level. Investors are awaiting a "lower high," signaling a bearish trend. Trading volume remains steady at NPR 4.56 billion, but uncertainty persists in the market. Analysts warn that a break below the Ichimoku support could lead to further declines.

Broker Analysis

Among the top 10 brokers with the highest turnover today, four showed relatively higher buying activity, while six leaned toward selling. Broker 58 led the market with a turnover of NPR 41.12 crore, accounting for 4.508% of the total market. Broker 58’s buying amounted to NPR 22.13 crore, with sales at NPR 18.98 crore. Broker 49 ranked second with a turnover of NPR 32.80 crore, but its net holding was negative by NPR 58.53 lakh, indicating selling pressure. Broker 6 showed a high buy-to-sell ratio of 3.836, though overall selling pressure persists in the market.

On the selling side, Broker 32 sold 51,865 shares of ( RIDI ) (50.38%), while Broker 58 sold 48,931 shares of ( HPPL ) (39.55%). On the buying side, hydropower stocks dominated, with Broker 58 purchasing 72,881 shares of ( HPPL ) (58.9%) and Broker 6 buying 39,280 shares of Himal Power (95.78%). This reflects both investor interest and selling pressure in the hydropower sector.