On the second trading day of the week, the Nepal Stock Exchange (Nepse) ended on a positive note. After closing lower on Sunday, the market rebounded on Monday with the benchmark index rising by 9.16 points to settle at 2770.39. The Sensitive Index gained 1.66 points, the Float Index climbed 0.66 points, and the Sensitive Float Index edged up by 0.64 points, reflecting modest gains across large-, mid-, and small-cap companies.

Decline in Turnover Raises Caution

Although the benchmark showed signs of recovery, overall market turnover declined compared to the previous day. On Sunday, trading volume had reached NPR 7.73 billion, but Monday’s figure fell to NPR 6.18 billion, with 152.29 million shares changing hands through 67,959 transactions involving 320 listed companies. Analysts note that this indicates cautious optimism—investors are focusing more on price movements rather than high-volume participation.

Top Gainers and Losers

Union Hydropower emerged as the top gainer of the day with its share price surging by 6.10%. Upper Sanghu Hydropower followed with nearly a 6% rise, while Upper Lohore Khola Hydropower advanced by about 5.5%. On the flip side, Sambridha Laghubitta faced the steepest fall, dropping by 4.81%, marking the day’s biggest loser.

Leading Companies by Turnover

In terms of transaction value, Nepal Reinsurance Company topped the list with NPR 2.17 billion worth of trades. Butwal Power Company followed with transactions worth nearly NPR 2.1 billion, and NRN Infrastructure crossed NPR 1.8 billion, signaling strong investor interest in these counters.

Sectoral Performance

Out of 13 sub-indices, 11 closed in the green while only 2 ended in red. The Trading sub-index led the market with a gain of 1.29%, whereas other sub-indices rose by less than 1%. The Mutual Fund and “Others” groups were the only decliners.

Technical Analysis

From a technical perspective, the index bounced back near its strong support zone of 2750–2760 and managed to close higher. The immediate support remains around 2750–2760, while the short-term resistance lies between 2785–2800 levels. Monday’s candlestick formed a “small bullish candle”, signaling a potential reversal after testing the support zone. However, analysts warn that a confirmation in the next trading session is necessary.

Trading volume was lower than the previous day, suggesting that buyers have not yet shown strong momentum. For a sustained bullish rally, higher turnover is essential. The RSI (Relative Strength Index), which had slipped below 40 on Sunday, showed mild recovery, closing at 41.47—still within the weaker zone, implying that the market remains fragile despite the bounce.

Broker Analysis

Looking at broker activity, out of the top 10 brokers, five were net buyers while the other five were net sellers. Broker No. 58 led the buying side with transactions worth NPR 5.83 billion, while selling only NPR 4.05 billion. Broker No. 34 showed heavier selling pressure, whereas Broker No. 42 leaned more towards buying. On the other hand, Brokers 45 and 49 experienced stronger selling pressure, indicating mixed sentiment among leading brokerage houses.

Experts caution that the market’s rebound should not be interpreted as a long-term bullish reversal. The modest gain in the index, coupled with shrinking turnover, suggests that uncertainty still looms among investors. However, after several consecutive declines, Monday’s session provided a short-term relief and revived some optimism in the domestic share market.