नेप्सेमा सामान्य सुधार, तर बजार अझै अन्योलमैNEPSE Sees Modest Recovery, But Market Sentiment Remains Uncertain

The Nepal Stock Exchange (NEPSE) index closed slightly higher on Thursday, recovering from the previous session’s decline. However, the continued fall in trading turnover suggests that investor confidence has not fully returned to the market.

On the final trading day of the week, the NEPSE index gained 6.94 points to close at 2,718.16. The Sensitive Index also edged up by 0.95 points, while the Float Index and Sensitive Float Index rose by 0.30 and 0.22 points respectively. Despite the green close, analysts say the market is still struggling to find a clear direction as the overall rise remained limited.

Trading turnover, meanwhile, continued to weaken. The market, which had recorded transactions worth more than Rs 3.19 billion on Wednesday, saw turnover fall to Rs 2.93 billion on Thursday. More than 6.6 million shares of 334 companies were traded through over 45,000 transactions. The declining turnover trend is being viewed as a sign that large institutional investors are still staying on the sidelines.

Sector-wise, 8 out of the 13 traded groups closed in positive territory, while 5 sectors declined. The trading sector posted the highest gain of 1.57 percent. Buying interest was visible in selected sectors outside banking, but finance, investment, manufacturing and processing, mutual funds, and non-life insurance sectors remained under pressure.

Among individual stocks, Swabalamban Laghubitta recorded the highest gain of 12.19 percent. However, most companies posted only moderate gains, indicating that buying pressure remained concentrated in a limited number of stocks. On the losing side, Forward Microfinance dropped by 13.24 percent, while Upper Lohore Khola Hydropower also declined by more than 9 percent, reflecting continued volatility in the market.

In terms of turnover, NRN Infrastructure and Development topped the chart with transactions worth over Rs 176.8 million. Reliance Spinning Mills and National Hydropower also witnessed strong trading activity during the session.

Technical indicators suggest that the market has not yet regained strong momentum. The daily candlestick formed on Thursday reflected market indecision, showing that neither buyers nor sellers were able to establish clear control. Although the market attempted to move higher during the session, selling pressure emerged near the close.

Chart patterns continue to show a “lower high” and “lower low” structure, indicating that the broader market trend remains weak. Analysts note that the market is still trading below a key downward trendline, which has yet to be decisively broken.

According to technical analysts, the 2,728-point level is currently acting as immediate resistance. A strong breakout above this zone with higher trading volume could improve short-term momentum. On the downside, the 2,669 level remains an important support area. If the market falls below this level, additional pressure could emerge toward 2,608 and 2,568 points.

Analysts say the market is currently at a crucial stage. While there is still room for short-term recovery, weak turnover and limited participation from major investors indicate that the market remains largely in a “wait and watch” phase.