This news article discusses about the key technical support and resistance levels of NEPSE and how investors should approach the current ranging market.
Understanding NEPSE’s Key Levels
Nepali share market is still in correction phase, according to technical analyst Santosh Singh Lingden. He has suggested investors not to make investment decisions in hurry. According to him, the market needs to cross some important key levels before it gives a clear sign of going up.
Lingden says that currently 2670 is a very important support for the market and 2705 is the main resistance. If the market can stay above 2705 with strong volume, only then a new up-swing might start. Before that happens, his analysis shows that market is still in correction mode.
The Ranging Market and Stock Selection
For the long term, he mentioned that NEPSE is staying between 2450 and 3350 points, which means it is a ranging market. In this kind of market, all sectors and companies do not rise at same time. Because of this, investors need to be very careful while choosing companies.
He also pointed out that the most common mistake made by investors is buying after the market goes up and selling in fear when market goes down. Based on technical analysis, he said it is best strategy to buy near the support area and book profits at the resistance area.
Watch and Wait Strategy
Lingden emphasized that market decisions should not be based on rumors or random guesses. Instead, one should analyze charts, trends, and trading volume. He said that it is better to make decisions based on what the chart is showing right now rather than guessing where the market will reach.
Currently, the market is in a watch and wait situation. If NEPSE can hold strongly above 2705 points, it could show a new upward trend. However, if it goes below 2670, we cannot ignore the possibility of more correction.
AI Disclaimer: This article was originally published on https://bajarkochirfar.com. It has been translated with the help of AI. For the best understanding and accurate facts, we recommend reading the original Nepali version.
