Market Rebounds: NEPSE Bounces Back from Trendline Support, Hydropower Sector Takes the Lead

After four consecutive days of decline, the NEPSE index finally turned green on Monday, rising by 23.19 points to close at 2,653.09. The rebound came precisely from a key trendline support level, signaling a possible technical recovery in the market.

Hydropower and Others Drive the Surge

The hydropower and “others” subgroups were the main contributors to the day's gain. Out of the 13 sub-indices, the hydropower subgroup rose by 2.35% and the “others” subgroup surged by 2.63%. A total of 83 hydropower companies and 6 companies from the “others” group saw noticeable price increases, lifting the overall index. The investment subgroup also gained over 1%. However, minor declines were observed in the hotel & tourism, life insurance, and trading subgroups—indicating a mixed but balanced market mood.

Trading Volume Declines Despite the Recovery

While the index showed a strong bounce, the total trading volume decreased. Compared to Sunday’s turnover of over NPR 9 billion, Monday saw a reduced volume of NPR 8.68 billion. A total of 324 companies were traded in more than 78,000 transactions throughout the day.

Top Gainers and Most Active Stocks

Most of the day’s top gainers came from the hydropower sector. Companies like Makar Jitumaya Suri Hydropower, Pure Energy, Dolti Power Company, and Vindhyabasini Hydropower hit the positive circuit level. Butwal Power and Maya Khola Hydropower also surged by over 9%. On the flip side, SaptaKoshi Development Bank saw the sharpest drop, falling by 7.47%.

In terms of turnover, Radhi Hydropower topped the chart with over NPR 612.6 million in trades, followed by Universal Power (NPR 540 million) and Butwal Power (NPR 510 million).

Technical Analysis: A Bullish Signal?

From a technical standpoint, NEPSE tested the same upward trendline for the fifth time and formed a bullish candle near the middle Bollinger Band. This area has historically acted as a strong support zone since last October, and the bounce suggests that the bullish structure is still intact. The RSI is hovering near 50, indicating that the market is currently in a neutral state—neither overbought nor oversold. This leaves room for movement in either direction.

Broker Activity: Mixed Sentiment Among Top Players

Among the top 10 brokers by turnover, 4 had more buying activity than selling, while 6 showed higher sell volumes. Broker No. 58 remained the most active, posting a total turnover of NPR 741.7 million—buying shares worth NPR 352 million and selling NPR 389.7 million, resulting in a buy-sell ratio of 0.90.

Broker No. 34 purchased NPR 300.5 million worth of shares while selling NPR 291.4 million. Broker No. 45 bought NPR 285.6 million and sold NPR 294.4 million. Broker No. 56 showed a similar pattern, with more selling than buying. However, brokers No. 42 and No. 17 showed stronger buying interest.