The second trading day of the week: Microfinance increased, NEPSE decreased,

On the second trading day of the week, out of the 13 sub-indices, 12 have decreased, while the Microfinance sub-index has seen a significant rise. The Microfinance sub-index increased by 2.43% on this day.

Trading Volume

On this day, a total of 316 stocks were traded 59,285 times, with a trading volume of NPR 4.40 billion, equivalent to 8.82 million shares traded.

Buddhabhumi Nepal Hydropower's stock price increased the most by 9.98%. Himalayan Microfinance, National Microfinance, and Global IME Microfinance saw their stock prices increase by more than 6%.

NIBL Stable Fund's unit price traded at a negative circuit level. Manakamana Engineering Hydropower's stock price decreased by about 6%.

Analysis of NEPSE Index Chart

The chart above represents the Nepal Stock Exchange (NEPSE) index performance. Here's a detailed technical analysis to help understand the current market situation:

Key Levels and Indicators

1. Current Index Level: The NEPSE index is at 2079, a slight decrease of 2 points or -0.12% from the previous close.

2. Volume: The trading volume is 4.004 billion, indicating the total value of shares traded.

3. Resistance and Support Levels:

- Resistance Levels:

- 2214: This is the highest resistance level, marked as 1 on the chart.

- 2157: The 0.786 Fibonacci retracement level.

- 2112: The 0.618 Fibonacci retracement level.

- 2080: The 0.5 Fibonacci retracement level, close to the current index level.

- Support Levels:

- 2041: The 0.382 Fibonacci retracement level.

- 2009: The 0.236 Fibonacci retracement level.

- 1946: The lowest support level marked on the chart.

Trend Analysis

- The index shows a significant downtrend starting from early 2023, with periodic recoveries.

- Recently, the index has shown signs of recovery, breaking the downward trend around April and continuing to rise until it hits resistance at around 2112 and then 2080.

- The Fibonacci retracement levels indicate the potential reversal points where the index could either find support and bounce back or face resistance and drop.

Recent Performance

- The index reached a high of 2214 before starting to decline.

- The recent decline has brought the index back to the 2079 level, which is very close to the 0.5 Fibonacci retracement level (2080). This could act as a critical point for the next market movement.

Market Sentiment

- Bullish Signals: If the index manages to break above the 2080 level, the next resistance levels to watch will be 2112 and 2157.

- Bearish Signals: If the index falls below 2041, it could test the lower support levels at 2009 and potentially 1946.

Conclusion

The NEPSE index is currently at a crucial point. The Fibonacci levels indicate that 2080 and 2041 are critical levels to watch for determining the market's next direction. A break above or below these levels could signal the next trend in the market.