NEPSE Daily Chart Signals a Potential Turning Point: Why 2,600 and 2,680 Levels Matter for Monday

The NEPSE Index is showing signs of a possible short-term recovery after a prolonged decline, with the daily chart indicating that buyers have started to regain some momentum.

After falling from around 2,960 to nearly 2,510, the Nepal Stock Exchange (NEPSE) Index has recovered approximately 135 points and recently closed around 2,647.22.

The key question for investors now is whether NEPSE can sustain this recovery and break through the important 2,660–2,680 resistance zone, or whether selling pressure will emerge again.

For Monday's trading session, market participants are likely to closely monitor the 2,600 support and 2,680 resistance levels.

Source: Bizshala | Technical levels and market scenarios are based on the referenced analysis and should not be treated as guaranteed predictions.

NEPSE Daily Chart Shows Signs of Short-Term Recovery

Recent green candlesticks on the NEPSE daily chart indicate increased buying activity following the decline toward the 2,510–2,520 support area.

The recovery suggests that buyers have become more active at lower levels. However, the broader trend will depend on whether NEPSE can establish itself above the next major resistance zone.

The 2,660–2,680 area therefore becomes an important technical zone for traders watching the Nepal stock market.

A sustained move above this area, particularly if supported by stronger trading volume, could improve the short-term technical structure.

Why Is 2,680 a Critical NEPSE Resistance Level?

The 2,660–2,680 range is currently an important resistance zone on the daily chart.

If NEPSE closes decisively above 2,680 with strong turnover, the next technical areas to monitor could be around:

• 2,720–2,740
• 2,780–2,800

These are technical reference levels rather than guaranteed targets.

On the other hand, if NEPSE faces rejection around 2,660–2,680, the recent recovery could remain a short-term relief rally rather than confirmation of a broader bullish trend.

2,600 Support Could Be Important for NEPSE

While resistance remains important, the 2,600–2,620 zone is another key area to watch.

If the index experiences profit booking but continues to hold above this region, the recent recovery structure could remain intact.

However, a decisive close below 2,600, particularly alongside elevated turnover, could indicate increasing selling pressure.

In that situation, traders may monitor the next areas around 2,560–2,580, followed by the previous 2,510 support zone.

Three Possible NEPSE Scenarios for Monday

Based on the technical levels discussed in the referenced analysis, Monday's market can be viewed through three broad scenarios:

Scenario 1: NEPSE Closes Above 2,680

A close above 2,680, accompanied by stronger market participation, could improve short-term momentum.

The next technical zones to monitor would be 2,720–2,740, followed by the 2,780–2,800 region.

Scenario 2: NEPSE Trades Between 2,620 and 2,680

If the index remains within this range, the market could continue consolidating while investors wait for a decisive breakout or breakdown.

This range-bound movement could make support, resistance, volume and sector rotation particularly important for short-term traders.

Scenario 3: NEPSE Closes Below 2,600

A close below 2,600 could weaken the recent recovery structure.

In such a situation, attention could shift toward 2,560–2,580, with the previous 2,510 area becoming another important support reference.

Trading Volume Could Confirm the Move

Price movement alone may not provide the complete picture.

Trading volume and turnover can help investors assess the strength behind an index move.

If NEPSE rises while turnover also expands, it may indicate stronger participation behind the advance. Conversely, an increase in the index accompanied by declining turnover could suggest weaker participation.

Similarly, a sharp decline in NEPSE combined with unusually high turnover may indicate increased selling activity.

Therefore, traders should monitor NEPSE price action together with daily turnover rather than relying on the index level alone.

What Should NEPSE Investors Watch on Monday?

For Monday's session, several technical factors deserve attention:

• 2,600–2,620: Key support zone
• 2,660–2,680: Major resistance zone
• Above 2,680: Monitor 2,720–2,740
• Above 2,740: Watch 2,780–2,800
• Below 2,600: Monitor 2,560–2,580
• Previous low: Around 2,510
• Trading volume: Important confirmation factor
• Daily candlestick: Watch for continuation or rejection

The interaction between these levels could provide a clearer picture of the market's short-term structure.

NEPSE Technical Analysis: What Does the Daily Chart Suggest?

The daily chart currently shows a recovery from the 2,510 area, but the index has not yet established a confirmed breakout above the major resistance zone.

Therefore, the 2,600 support and 2,680 resistance levels remain important reference points.

Instead of focusing only on whether the market rises or falls on a single trading day, investors can monitor how NEPSE behaves around these technical zones, together with turnover and candlestick formations.

For investors looking to improve their understanding of NEPSE technical analysis, candlestick patterns, support and resistance, RSI, MACD and chart analysis, structured stock market education can help build a more systematic approach.

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Frequently Asked Questions (FAQ)

What is the important NEPSE support level for Monday?

The referenced technical analysis identifies the 2,600–2,620 zone as an important short-term support area. A move below 2,600 would require investors to monitor lower support zones.

What is the major NEPSE resistance level?

The 2,660–2,680 zone is identified as the major resistance area in the analysis. A sustained close above 2,680 with stronger turnover could improve the short-term technical structure.

What happens if NEPSE breaks above 2,680?

If NEPSE closes above 2,680 with strong participation, the analysis identifies 2,720–2,740 as the next technical area to monitor, followed by 2,780–2,800.

What happens if NEPSE falls below 2,600?

A close below 2,600 could indicate weakening short-term momentum. The next technical areas mentioned in the analysis are 2,560–2,580, followed by the previous 2,510 region.

Why is trading volume important in NEPSE technical analysis?

Trading volume can provide additional context about market participation. Rising prices with increasing turnover may indicate stronger participation, while rising prices with declining turnover can indicate weaker participation.

Where can I learn stock market analysis in Nepal?

Investors interested in stock market classes, NEPSE technical analysis and share market training in Nepal can explore educational resources and training information through Sarbaguna.com or contact Deep Thapa at 9849290806.

Final Takeaway

The NEPSE daily chart is showing a recovery from the recent low, but the market is approaching a technically important area.

For Monday, 2,600–2,620 remains a key support zone, while 2,660–2,680 represents the major resistance area discussed in the analysis.

Rather than treating any single level as a guaranteed market signal, investors can watch the combination of price action, candlestick structure, support and resistance, turnover and broader market participation before making investment decisions.