Market Reacts from Double Bottom — NEPSE Rises by 44 Points on Monday, Gains Strength in Final Hour

On the second trading day of the week (Monday), Nepal’s stock market witnessed positive movement. The Nepal Stock Exchange (NEPSE) index increased by 44.25 points, closing at 2,547.60 points. Despite the rise in the index, the total trading volume declined. Compared to Sunday’s NPR 6.61 billion, today’s total turnover stood at NPR 4.60 billion.

NRN Infrastructure & Development Limited topped the turnover list with over NPR 319.1 million in transactions, followed by Nepal Reinsurance Company with over NPR 264.7 million worth of shares traded.

A total of 200 companies saw price gains, while 44 companies’ prices declined. Three insurance companies — Nepal Micro Insurance Company, Nepal Reinsurance Company, and Crest Micro Life Insurance Company — hit the positive circuit limit (10.10%). Similarly, Emerging Nepal Limited rose by 9.92%, and NRN Infrastructure & Development gained 9.82%.
All sectoral indices ended higher, with the “Others” sub-index recording the biggest rise of 5.01%.

Technical Analysis: Market Reacts from the Double Bottom Zone

Technically, NEPSE showed a strong reaction from the Double Bottom support zone today. According to market analyst Ajit Khanal, although today’s candle looks like a hammer, its long body prevents it from being classified as one. The market has shown a strong rebound from the support area, but for sustainability, the next candle needs to close above today’s high.

The RSI (Relative Strength Index) remains below the neutral zone (under 40), indicating the market is still under pressure and in an oversold zone, suggesting potential for a short-term technical bounce.
While total turnover decreased to NPR 4.60 billion, over NPR 1 billion worth of trades occurred in the last 20 minutes, signaling strong late buying pressure.

Sectoral and Broker Analysis

The hydropower sector’s share of total turnover declined to around 30%, while the investment and others sectors saw a noticeable increase in trading activity.
Among the top 10 brokerage firms, 9 brokers bought more than they sold, reflecting rising investor confidence and renewed buying momentum in the market.