NEPSE Retreats for Second Consecutive Day; Holds Key Support

The Nepal Stock Exchange (NEPSE) index closed in the red for a second consecutive day on Monday, February 9, but remained within a key support level.

The benchmark index fell 0.96 percent, or 26.05 points, to end at 2,672.39, extending Sunday’s 0.37 percent decline.

The 2,672 level was first reached in February 2021, after which the index surged close to 3,200 in August that year. It then formed a lower-high, lower-low pattern, followed by prolonged consolidation later that year.

Between March 2022 and late July 2024, the index traded well below the 2,672 mark. During this period, it remained largely range-bound between 1,800 and 2,200, displaying mixed candles with small bodies. Alternating red and green sessions reflected persistent indecision and base formation.

A sharp upward movement in mid-August 2024 was followed by a steep downward trend in September. The 2,672 level subsequently acted as support until mid-December 2024 and as resistance until early February 2025. Since then, it has alternated between acting as support and resistance.

The downturn intensified from late July 2025, particularly following the Zen Z protests in September. Since mid-January 2026, the level has served as a support. However, sustained bullish continuation has yet to materialise in recent years, with rallies repeatedly meeting profit booking.

The short-term trend remains neutral to mildly bearish, while the medium-term trend continues to be corrective. Some analysts argue that heightened caution ahead of the March 5 House of Representatives elections has left long-term investors indecisive.

A total of 26.76 million shares were traded through 102,281 transactions, generating a daily turnover of Rs 10.77 billion, down from Rs 11.65 billion on Sunday.

Market breadth remained weak. As many as 212 companies declined, 42 advanced, and six remained unchanged.

All major sub-indices closed lower. The Sensitive Index fell 0.87 percent, the Float Index dropped 1.04 percent, and the Sensitive Float Index slipped 1 percent.

Among individual stocks, Khanikhola Hydropower Co. Ltd. (KKHC) led the gainers with a 9.97 percent rise, followed by Ridi Power Company Limited (RIDI), up 9.11 percent. Maya Khola Hydropower Company Limited (MKHC) was the top loser, falling 5.40 percent.

In terms of turnover, RIDI topped the list with transactions worth Rs 771.91 million. SY Panel Nepal Limited (SYPNL) and Ankhu Khola Jalvidhyut Company Ltd. (AKJCL) followed.

Of the 13 sectoral indices, only the Trading Index ended higher, gaining 0.24 percent. The Finance Index recorded the sharpest decline, shedding 2.29 percent.

Total market capitalisation declined to Rs 4,487.01 billion from Rs 4,530.76 billion on Sunday.