NEPSE Retracts 21 Points at 2640 Resistance: Healthy Correction or Impending Downtrend ?

Sep 16, 2026
42

The Nepal Stock Exchange (NEPSE) index experienced a pullback today, sliding 21.19 points after encountering resistance at the 2,640 mark. Despite the loss, market liquidity remained strong, with total turnover surpassing NPR 5.38 billion across 15.1 million shares traded.

Market Breadth

Advanced 42
Declined 225
Unchanged 12

Advance-Decline (A/D) Ratio: 0.19

(For every 1 advancing stock, approximately 5.36 stocks declined)

Market Breadth Metric	Count	Share (%)	Ratio / Breakdown
Advancers	42	15.05%	A/D Ratio: 0.19
Decliners	225	80.65%	D/A Ratio: 5.36
Unchanged	12	4.30%	Simplified Ratio (A:D:U): 14 : 75 : 4
Total Traded	279	100.00%	Market Sentiment: Weak

Top Gainers Breakdown

Narayani Development Bank Limited (NABBC) led the session's gainers, rising 6.37% to close at NPR 745.00.

Symbol	Company Name	LTP (NPR)	Point Change	% Change
NABBC	Narayani Development Bank Limited	745.00	+44.60	+6.37%
HDHPC	Himal Dolakha Hydropower Company Limited	228.00	+11.50	+5.31%
MEPDL	Mount Everest Power Development Limited	703.00	+29.50	+4.38%
KMCDB	Kalika Laghubitta Bittiya Sanstha Limited	854.00	+35.50	+4.34%
BNL	Bottlers Nepal (Balaju) Limited	14,000.00	+485.00	+3.59%

Top Losers Breakdown

NMB Hybrid Fund L-2 (NMBHF2) led the session's decliners, dropping 7.73% to close at NPR 8.47.

Symbol	Company / Scheme Name	Close Price (NPR)	Pt. Change	% Change
NMBHF2	NMB Hybrid Fund L-2	8.47	-0.71	-7.73%
RLEL	River Falls Power Limited	784.90	-43.10	-5.21%
NWCL	Nepal Warehousing Company Limited	590.10	-30.80	-4.96%
SMFBS	Swabhimaan Laghubitta Bittiya Sanstha Limited	1,375.00	-66.00	-4.58%
SINDU	Sindhu Bikash Bank Limited	430.00	-20.00	-4.44%

Top Turnover Breakdown

Himal Dolakha Hydropower Company Limited (HDHPC) recorded the highest liquidity of the day, commanding over NPR 37.95 crore in total turnover and closing at NPR 228.00.

Symbol	Company Name	Turnover (NPR)	LTP (NPR)	Pt. Change
HDHPC	Himal Dolakha Hydropower Company Limited	379,564,213.90	228.00	11.50
RSML	Reliance Spinning Mills Limited	251,011,786.60	2,810.00	-69.00
SHIVM	Shivam Cements Limited	165,709,479.50	676.30	-4.70
SOHL	Solu Hydropower Limited	150,792,021.80	653.00	-1.00
LEC	Liberty Energy Company Limited	146,832,688.30	251.00	-8.40

Sectoral Performance & Remarks

All 13 sub-indices closed in negative territory today, reflecting a broad-based market correction. The HydroPower Index saw the highest trading turnover (NPR 2.68 Billion) and the steepest percentage drop (-1.04%), followed closely by Life Insurance (-1.01%).

Sub Index	Close	Point Change	% Change	Turnover (NPR)	Market Remark
HydroPower	3,611.01	-37.97	-1.04%	2,687,155,030.20	Top Traded Sector: Led market liquidity (~50% of total turnover) but suffered the steepest percentage drop.
Life Insurance	11,642.71	-118.90	-1.01%	97,782,304.70	Significant Drag: High point loss with notable profit-booking across institutional funds.
Non Life Insurance	9,745.87	-89.97	-0.91%	72,326,298.10	Under Pressure: Continued mild distribution with minimal buying support.
Others Index	1,838.53	-16.26	-0.87%	84,949,702.80	Moderate Decline: Shadowed broader index movement without strong counter-trend buying.
Hotels And Tourism	7,124.96	-61.69	-0.85%	106,351,738.50	Soft Retrenchment: Sector cooled down following recent upward rallies.
Microfinance	4,509.90	-37.73	-0.82%	198,540,728.60	Widespread Loss: Small-cap stocks pulled back as retail sentiment turned cautious.
Investment	97.62	-0.80	-0.81%	316,845,994.90	Steady Volume: Active trading volume failed to prevent minor value erosion.
Finance	2,262.82	-17.50	-0.76%	134,640,637.00	Consolidation: Range-bound movement near intermediate support zones.
Development Bank	5,452.40	-40.13	-0.73%	256,581,952.80	Mixed Trading: Gains in individual scrips (e.g., NABBC) were offset by sector-wide losses.
Trading Index	3,275.42	-23.21	-0.70%	7,730,344.60	Low Liquidity: Thinly traded sector with wider bid-ask spreads.
Mutual Fund	19.51	-0.12	-0.64%	14,323,872.35	NAV Adjustments: Tracked underlying equity declines; high unit sell-offs in select funds (NMBHF2).
Banking SubIndex	1,478.89	-9.46	-0.63%	670,575,158.90	Heavyweight Support: Subdued point loss helped cushion the benchmark index from a deeper crash.
Manufacturing & Processing	10,620.39	-58.92	-0.55%	691,566,333.80	Relative Outperformer: Most resilient sector of the day, supported by high turnover in cement stocks (SHIVM).

Technical Outlook & Strategy

Market Structure: The daily structure remains in a broader consolidation phase between 2,580 and 2,640. A clean breakdown below 2,580 could trigger further correction toward 2,540, while a confirmed close above 2,650 is required to re-establish bullish continuation.
Trader Action Plan:
1. Avoid aggressive fresh long entries until the 2,640 resistance is reclaimed with expanding volume.
2. Monitor price behavior near the 2,580–2,600 support zone for potential reversal or stabilization signals.
3. Maintain tight stop-loss levels on high-beta sectors like Hydropower and Microfinance, which exhibit elevated downside momentum.