NEPSE has fallen only to make a  new high (A technical view of current market scenario)

The market has been trading in a bearish trend since last week. It is continuously falling down for the past 7 days.  On the 8^th day (today), market plunged by 88.81 points to close at 1675.91 levels. This has created a panic among investors. Earlier, NEPSE has reached to 1205.84 points which later decreased to 1022.77 points.  This fall was not meant to reduce rather it turned out to be a support to make a new high. With this market created a new high of 1881.45 points. In between this, market gained 858.96 points afterward . The market continuously moved in upward trend without any major correction from 1022.77 points to 1881.45 index. The decrease in market by 183.07 points led to an incement of index by more than 469.19% within 8 months time period. This situation depicts that the market is not meant to decline rather this will work as a support to creat a new high. The market is continuously falling in downward trend from 1881.45 points. The lowest point at which market will hover around will in turn become the support for its increment. The first support line  will be 1630 points whereas the second and third support line will be 1550 points and 1480 points respectively. The fall of market from 1175 index to 298 index may not be similar to the current market scenario falling from 1881.77 points to 1480 index levels.The present scenario of the market  if it decreases from 1881.45 point to 1480 will become a major support line to increase the market in an upward trend. This trend shows that the market will create a new high of 2600 points. Therefore, this down trend of market is only to make a new high in NEPSE. As  for now , the present market is an advantage for  long term investors to buy shares at comparatively cheaper price. Hence investors need not to panic seeing the current market scenario. It is the nature of stock market to move upward and downward. The unusual decrement in market does not mean that the market will always go downward. Investors  generally tend to see market as bullish when the market goes upward and bearish when the market falls downward.   Sagun Shakya Technical Analyst ShareSansar.Com