NEPSE Falls Over 2% in Weekly Trade — What’s Next for the Market?
The NEPSE index slipped 2.20% last week, closing at 2,719.77. Analysts see key support at 2,690–2,720 and resistance near 2,760–2,800.
The Nepal Stock Exchange (NEPSE) extended its losing streak last week, dropping 2.20% (61.23 points) to close at 2,719.77. Out of five trading sessions, the benchmark rose only once, while four sessions ended in the red, underscoring sustained selling pressure.
Support and Resistance Levels
NEPSE has now slipped into its support zone of 2,690–2,720. Market analysts suggest that if the index holds at this range, it may attempt a rebound toward 2,760–2,800, where heavy resistance is likely.
Bearish Technicals
Weekly charts formed a bearish candlestick pattern, with four consecutive red candles signaling clear dominance by sellers. Momentum indicators remain negative:
MACD line is below the signal line, both trending in negative territory.
The histogram is deepening further into the red, reinforcing the bearish outlook.
Stochastic RSI sits in the oversold zone, indicating stronger selling pressure relative to buying interest.
Weak Trading Volume
Trading activity remained subdued. The average daily turnover was just NPR 5.10 billion, nearly 19.6% lower than the 20-day moving average of NPR 6.34 billion. Low liquidity highlights weaker conviction among buyers and raises caution about potential rebounds.
Outlook
Unless fresh buying interest emerges, NEPSE is expected to hover near the 2,690–2,720 support zone. A breakdown below this range could accelerate downside pressure toward lower levels, while a rebound could see resistance at 2,760–2,800. For now, the bias remains bearish, and traders are advised to watch volumes and institutional activity closely.