NEPSE Shatters 2200 Resistance, Soars 1.34% with Colossal Rs. 7.08 Arba Turnover, Highest Since January

The Nepal Stock Exchange (NEPSE) Index experienced a substantial increase of 29.21 points, or 1.34%, closing at 2,204.61 points today. This follows a 23.25-point rise in the previous trading session, highlighting a period of strong market performance.

Today's trading session saw a bustling environment with 331 stocks exchanged across 87,086 transactions. The volume of shares traded reached 20,237,780, culminating in a total turnover of Rs. 7.08 Arba. This marks the highest turnover in the past 5.5 months, with the last peak recorded on January 21, 2024, at Rs. 7.67 Arba. The market capitalization stood at Rs. 34.96 Kharba, and the float market capitalization was Rs. 11.96 Kharba.

CEDB Hydropower Development Company Limited (CHDC) emerged as the market leader in terms of turnover, achieving Rs. 15.25 Crores and closing at Rs. 1,142 per share.

Balephi Hydropower Limited (BHL) also made significant strides, hitting the positive circuit for the day with a 10% surge.

In contrast, Samaj Laghubittya Bittiya Sanstha Limited (SAMAJ) saw the highest loss, declining by 4.59%.

Sector-wise, only two indices concluded the day in positive territory. The Life Insurance Index recorded the highest gain, rising by 3.06%, while the Microfinance Index saw a loss of 0.53%. 

Technical Analysis Insights

From a technical standpoint, the NEPSE Index opened at 2,188.63 and recorded an intraday low of 2,185.02. The index climbed to an intraday high of 2,205.15 before closing at 2,204.61. This movement indicates that the market tested the resistance zone and successfully closed above it. 

Today's turnover was notably higher than yesterday's Rs. 5.74 Arba, underscoring increased trading activity. Despite a minor correction of 4.62 points on Monday, the overall trading trend has been positive.

The Relative Strength Index (RSI) stands at 75.74, signaling strong momentum. Additionally, the Moving Average Convergence Divergence (MACD) line crossed above the zero line, reading 27.07, which is an optimistic indication. The MACD line had already crossed over the signal line a few days ago, suggesting a mild bullish sentiment in the market.

The NEPSE Index's ability to close above the resistance zone is a positive sign, with technical indicators suggesting a bullish sentiment. The market's direction in upcoming sessions will be crucial in determining whether this upward trend will continue.