Positive Closing: NEPSE Crosses 2600 Mark with Strong Volume Surge
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NEPSE TRADING
Nepal’s stock market witnessed a strong rebound today as the NEPSE index climbed above the psychological level of 2600 points, signaling renewed investor optimism. The benchmark index rose by 24.22 points to close at 2600.38 points.
According to Nepal Stock Exchange (NEPSE), a total of 249 companies were traded today, with 26,010,718 shares changing hands worth Rs 7.51 billion. This is a significant jump from Wednesday’s turnover of Rs 5.45 billion, indicating higher market participation and investor confidence returning to the market.
Two microfinance companies — Guras Laghubitta and Unnati Sahakarya Laghubitta — hit the positive circuit level during the day. Likewise, shares of Super Mai Hydropower, Ganapati Laghubitta, and Peoples Hydropower surged by more than 9%.
On the downside, the mutual fund segment came under pressure as NIBL Samriddhi Fund dropped by 5.70% and Sanima Growth Fund fell by 5.24%.
In terms of turnover, Himalayan Bank’s promoter shares topped the list with a single-day trading value of Rs 1.66 billion. Similarly, Radhi Hydropower and Nepal SE Insurance saw heavy transactions worth Rs 370 million and Rs 340 million, respectively.
Out of 13 sub-indices, 12 closed in the green, while only the Mutual Fund sub-index declined. The Hydropower sub-index led the gainers, climbing 2.67%, followed by Development Banks, Finance, Investment, Life Insurance, Manufacturing & Processing, Microfinance, and Non-life Insurance, which all rose by more than 1%.
The NEPSE’s move above the 2600 level after consistent improvement over recent sessions is seen as a psychological boost for investors, reflecting renewed market confidence.
Technical Analysis
Technically, NEPSE delivered a strong breakout session by surpassing two key resistance levels — the downtrend line and the middle Bollinger Band — both of which were decisively breached on Thursday. Analysts interpret this as a potential trend reversal signal.
However, the market still failed to close above yesterday’s inverted hammer high, meaning yesterday’s candle has not yet been fully validated — implying some degree of volatility remains.
The Relative Strength Index (RSI) now stands near the neutral zone (48–50), suggesting that market balance is gradually being restored.
Trading structure shows that nearly 50% of total turnover came from the Hydropower sector, while other sectors saw relatively limited activity.
From a technical standpoint, if NEPSE sustains above the 2640–2650 resistance zone, analysts believe the index could test the 2700 level in the coming week. However, the RSI and volume structure still suggest caution in the short term.
Broker-Wise Analysis
Looking at the top 10 brokers, buy and sell activity remained evenly balanced (5–5), indicating natural market stability.
Brokers 34, 55, 49, 62, and 42 had higher buy volumes,
while brokers 48, 58, 45, 44, and 33 recorded higher sell volumes.
Key trading highlights include:
Broker 44 executed 37% of HIDCLP’s total buy volume (86,000 shares).
Broker 58 accounted for 47% of FMDBL’s total buy (57,000 shares).
Broker 28 handled 28% of SBI’s total buy (50,000 shares).
Broker 62 executed 37% of UMHL’s total buy (34,000 shares).
Broker 28 also handled 32% of KBL’s total buy (33,000 shares).
On the sell side:
Broker 58 sold 61% of HPPL’s total sell volume (194,000 shares).
Broker 34 sold 41% of NGPL’s total sell (155,000 shares).
Broker 33 sold 66% of SBI’s total sell (123,000 shares).
The NEPSE market has shown strong technical recovery signals after several mixed sessions. The substantial rise in trading volume and broad-based sectoral growth indicate growing investor participation and renewed optimism.
Analysts expect the market’s balanced recovery trend to continue into the coming week, though short-term indicators like RSI and volume suggest that cautious optimism is warranted.
Overall, NEPSE’s close above the 2600 mark is viewed as a significant psychological and technical milestone for Nepal’s capital market.
