NEPSE Declines Slightly, Market Still in 'Wait and Watch' Mode

On the last trading day of the week, the NEPSE index dropped by 4.45 points, closing at 2,595.74. For the past few days, the market has remained largely flat, hovering around the 2,600 level without showing any clear trend. The total turnover today crossed NPR 7.78 billion, slightly higher than in recent sessions, with over 19.6 million shares traded across 306 companies.

Butwal Power Leads Turnover; Hydropower Back in Focus

Butwal Power Company emerged as the top traded stock, with transactions worth over NPR 620 million. Radhi Power Company and Ngadi Group Power followed in second and third positions, respectively. Notably, nearly 70% of today's total turnover came from the hydropower sector, indicating renewed investor interest in hydropower stocks.

End of Fiscal Year, Monetary Policy Awaited — Market Under Pressure

With the fiscal year-end approaching, investors are turning cautious due to loan repayment obligations and the upcoming monetary policy. The anticipation of annual financial disclosures from companies has also led to a cautious "wait and watch" sentiment in the market.

Technical Analysis: Stuck at Support, No Clear Trend Yet

From a technical perspective, the market closed today without forming a strong directional trend. The last four candlesticks have closed within a narrow price range. Although today’s candle resembles an “inverted hammer,” like in previous sessions, it hasn’t confirmed a reversal. Intraday data shows that the index continues to test support levels but hasn’t broken them. This suggests some support exists in the market, but there’s no strong signal of a bullish reversal yet. The slight increase in turnover and activity among major brokers suggests underlying interest, but caution still prevails.

Broker Activity: Major Brokers Leaning Towards Buying

Out of the top 10 brokers, 7 were net buyers today, while 3 showed more selling activity. This indicates that larger investors remain active on the buying side, potentially positioning for upcoming policy changes or quarterly earnings.

The market currently lacks a clear direction. Whether or not the support level holds in the coming days will determine the next major move. Investors are advised to monitor closely and proceed cautiously until a clear breakout or breakdown emerges.