How to Enter Nepal's Secondary Market (NEPSE): Complete Process, All Costs & Pro Technical Analysis Guide (2026)
Published by: SS Holdings & Investment Pvt. Ltd., Kathmandu | Updated: May 2026 | Reading time: ~10 minutes
Most first-time investors in Nepal are familiar with IPOs — but the real wealth-building opportunity in NEPSE lies in the secondary market: buying and selling shares that are already listed. This is where prices move daily, technical analysis comes alive, and informed investors build portfolios over time. This guide covers everything you need — from opening your trading account to understanding every rupee you pay in fees — and then teaches you the technical analysis methods that professional traders use on NEPSE.
🏦 Part 1: The Secondary Market Entry Process
The secondary market is where you buy or sell shares after a company has listed on NEPSE through an IPO. Unlike IPOs where you apply directly to the company, in the secondary market you trade through a licensed broker on the NEPSE trading platform (TMS — Trade Management System).
To participate, you need three things: a Demat account (BOID), a trading account with a NEPSE broker, and a linked bank account.
Visit any licensed Depository Participant (DP) — most major banks and brokerages act as DPs. You'll receive a 16-digit BOID (Beneficiary Owner ID) number. Required documents: citizenship copy, passport photo, bank account details. One-time account opening fee: approximately Rs 200–500 depending on the DP.
There are currently 50 licensed stockbrokers in Nepal regulated by SEBON. Visit your chosen broker's office or register online on their TMS portal. You'll link your BOID and bank account. Popular brokers include NIMB Ace Capital, Nabil Investment Banking, NMB Capital, Sunrise Capital, and Sanima Capital — among others. Choose one based on your location, their online TMS experience, and customer support quality.
The Trade Management System is NEPSE's official online trading platform. After your broker activates your account, log in to TMS using your broker-assigned credentials. TMS allows you to place buy/sell orders, view your portfolio, check order status, and monitor real-time market data. The TMS mobile app is also available for Android and iOS.
Before placing buy orders, deposit funds into your broker's client account via bank transfer or NEPSE's Collateral Management System (CMS). Some brokers also support direct bank ASBA-style buying. Confirm the funding method with your specific broker — it varies by institution.
NEPSE trades Sunday to Thursday only (Nepal observes Friday–Saturday weekend). Trading session: 11:00 AM to 3:00 PM Nepal Standard Time. You can place market orders (buy/sell at current price) or limit orders (buy/sell at a specific price you set). Orders not executed by 3:00 PM are automatically cancelled for that session.
💰 Part 2: All Costs Involved in Secondary Market Trading
This is where most beginners get surprised. The price you see on the screen is not what you pay. There are four distinct charges on every NEPSE transaction. Understanding them is non-negotiable before you trade.
A — Broker Commission (Tiered Slab System)
Broker commission applies on both buy and sell sides of every trade. The rate is tiered — it decreases as your transaction amount increases.
| Transaction Amount (Rs) | Max Commission Rate | Breakdown |
|---|---|---|
| Up to Rs 50,000 | 0.36% | Broker 79.4% + NEPSE 20% + SEBON 0.6% |
| Rs 50,001 – Rs 5,00,000 | 0.33% | Same split applies |
| Rs 5,00,001 – Rs 20,00,000 | 0.31% | Same split applies |
| Rs 20,00,001 – Rs 1,00,00,000 | 0.27% | Same split applies |
| Above Rs 1,00,00,000 | 0.24% | Same split applies |
| Note: Out of each commission collected, 79.4% goes to the broker, 20% to NEPSE, and 0.6% to SEBON as a regulatory fee. | ||
B — SEBON Transaction Fee
Both buyer and seller pay an additional SEBON transaction fee of 0.015% of the total traded amount on every transaction. This is separate from the SEBON portion of the commission above.
C — DP Charge (Depository Participant)
An additional Rs 25 per stock per transfer day is applicable as DP transaction charge, payable to your Depository Participant. This flat fee applies to both buy and sell transactions.
D — Capital Gains Tax (CGT) — On Selling Only
CGT applies only when you sell shares at a profit. The rate depends on how long you held the shares:
| Holding Period | CGT Rate (Individual) | CGT Rate (Institution) |
|---|---|---|
| 365 days or less (Short-term) | 7.5% of net profit | 10% of net profit |
| More than 365 days (Long-term) | 5% of net profit | 10% of net profit |
| CGT is calculated on net profit only (sell proceeds minus total buy-side cost including all charges). | ||
📐 Real Cost Example — Buying and Selling 100 Shares at Rs 500
| Buy: 100 shares × Rs 500 | Rs 50,000 |
| + Broker commission (0.36% of Rs 50,000) | Rs 180 |
| + SEBON fee (0.015% of Rs 50,000) | Rs 7.50 |
| + DP charge (flat) | Rs 25 |
| Total Buy Cost | Rs 50,212.50 |
| — Later, you sell at Rs 560 per share — | |
| Sell: 100 shares × Rs 560 | Rs 56,000 |
| – Broker commission (0.36%) | – Rs 201.60 |
| – SEBON fee (0.015%) | – Rs 8.40 |
| – DP charge | – Rs 25 |
| Net proceeds before CGT | Rs 55,765 |
| Net profit = Rs 55,765 – Rs 50,212.50 | Rs 5,552.50 |
| CGT at 7.5% (short-term) | – Rs 416.44 |
| Final Net Profit in Hand | ≈ Rs 5,136 |
📊 Part 3: Technical Analysis Methods for NEPSE — From Basic to Pro
Technical analysis (TA) is the study of price charts and market data to forecast future price movements. Unlike fundamental analysis (which studies company financials), TA focuses purely on price action, volume, and market psychology. Here are the methods used by serious NEPSE analysts — in increasing order of sophistication.
📏 1 — Support & Resistance Levels
BeginnerWhat it is: Support is a price level where a falling stock tends to stop and reverse upward — buyers step in. Resistance is where a rising stock tends to stall — sellers dominate. These levels are identified by looking at previous price peaks and troughs on a chart.
How to use it on NEPSE: Draw horizontal lines at previous high and low points. When NEPSE or a stock approaches a known support zone, that is a potential buy opportunity. When it approaches resistance, consider taking profits or waiting for a breakout confirmation.
📈 2 — Moving Averages (MA 5 / 20 / 50 / 180)
Beginner–IntermediateWhat it is: A moving average smooths out daily price noise and shows the underlying trend. SS Holdings uses four MAs as standard: MA(5) for ultra-short-term, MA(20) for short-term trend, MA(50) for medium-term, and MA(180) for the dominant long-term trend.
How to use it:
- Golden Cross: MA(5) crosses above MA(20) = short-term bullish signal — consider entry
- Death Cross: MA(5) crosses below MA(20) = short-term bearish — consider exit or avoid buying
- Price above MA(180): Long-term uptrend — favour buying dips
- Price below MA(50) and MA(180): Correction phase — wait for recovery before adding positions
📉 3 — RSI (Relative Strength Index)
IntermediateWhat it is: RSI is a momentum indicator that measures the speed and magnitude of recent price changes. It oscillates between 0 and 100. Developed by J. Welles Wilder, it is one of the most widely used indicators in the world.
How to read RSI:
- RSI above 70: Overbought — the stock may be due for a pullback. Reduce exposure or avoid new buys.
- RSI below 30: Oversold — the stock may be undervalued and due for a bounce. Look for buy signals.
- RSI between 40–60: Neutral — no strong momentum either way.
- RSI Divergence (Advanced): If price makes a new high but RSI makes a lower high, it signals weakening momentum — a possible reversal ahead. This is a high-accuracy signal when combined with resistance levels.
〰 4 — MACD (Moving Average Convergence Divergence)
IntermediateWhat it is: MACD measures the relationship between two exponential moving averages (typically EMA 12 and EMA 26). The MACD line crossing above the signal line is a bullish signal; crossing below is bearish. The histogram shows the strength of momentum.
Three signals to watch:
- MACD Crossover: MACD line crosses above signal line = buy signal. Crosses below = sell signal.
- Zero Line Cross: MACD crosses above zero = confirming uptrend. Below zero = downtrend.
- Histogram contraction: Bars getting smaller = momentum fading. A potential reversal is approaching.
🕯 5 — Candlestick Pattern Recognition
IntermediateWhat it is: Every candle on a price chart tells a story of the battle between buyers and sellers in that session. Learning to read high-probability candlestick patterns gives you an edge in timing entries and exits.
Key patterns every NEPSE trader must know:
- Bullish Engulfing: A large green candle fully engulfs the previous red candle — strong reversal signal at support. One of the most reliable signals on NEPSE daily charts.
- Doji: Opening and closing price almost equal — market indecision. A Doji at resistance = potential reversal. At support = potential bounce.
- Hammer: Small body, long lower wick at the bottom of a downtrend — buyers rejecting lower prices. Bullish reversal signal.
- Shooting Star: Small body, long upper wick at the top of an uptrend — sellers rejecting higher prices. Bearish reversal signal.
- Three White Soldiers: Three consecutive strong green candles — powerful uptrend continuation signal.
📦 6 — Volume Analysis
IntermediateWhat it is: Volume is the number of shares traded in a session. Price moves mean very little without volume to confirm them. Volume is the conviction behind price.
- Price rising + volume rising: Healthy, confirmed uptrend. Strong buy signal.
- Price rising + volume falling: Weak rally — likely to reverse. Be cautious.
- Price falling + volume rising: Panic selling or institutional distribution — avoid buying yet.
- Price falling + volume falling: Sellers losing momentum — potential bottom forming. Watch for reversal signals.
🧠 7 — SMC: Smart Money Concepts (Advanced)
Advanced / ProWhat it is: Smart Money Concepts (SMC) is an advanced price action framework that tracks institutional and large-player activity in markets. It focuses on how "smart money" (institutions, large funds, market makers) manipulates retail traders before making their real move. Key concepts include:
- Break of Structure (BOS): When price breaks a previous swing high (bullish BOS) or swing low (bearish BOS), confirming trend direction. On NEPSE, a daily close above a previous major swing high is a confirmed bullish BOS — a high-confidence buy trigger.
- Change of Character (CHOCH): The first sign of a trend reversal. In a downtrend, when price makes a higher high for the first time — that is a CHOCH. Early entry opportunity for experienced traders before the trend fully reverses.
- Fair Value Gap (FVG): A price imbalance created when the market moves too fast — leaving a "gap" between two candles where no transaction occurred. These gaps act as strong magnets — price almost always returns to fill them. Identify FVGs on the 1H or daily NEPSE chart and use them as precision entry zones.
- Order Blocks: The last bearish candle before a major bullish move (or vice versa). These represent where institutions placed their large orders. When price returns to an order block, it's a high-probability reversal zone.
🌀 8 — Fibonacci Retracement
AdvancedWhat it is: Fibonacci retracement is a tool that identifies potential support/resistance levels during a pullback within a trend, based on the mathematical ratios 23.6%, 38.2%, 50%, 61.8%, and 78.6%. These levels emerge repeatedly in financial markets and have strong predictive value.
How to use on NEPSE: After a significant NEPSE rally, draw Fibonacci from the swing low to the swing high. The 38.2% and 61.8% retracement levels are the most powerful — these are where institutional buyers typically re-enter. The current NEPSE pullback from 2,960 to ~2,720 represents a ~7.4% retracement — placing the 38.2% Fibonacci level near the 2,740–2,750 zone (now acting as resistance).
⚡ Pro Tips from SS Holdings — NEPSE-Specific
🎯 SS Holdings Final Note
The secondary market offers far greater opportunity than IPOs alone — but it also demands more knowledge, discipline, and emotional control. Master the entry process and costs first. Then build your technical analysis skills one tool at a time — start with Support/Resistance and Moving Averages, add RSI and MACD, and gradually incorporate volume analysis and SMC as your chart-reading fluency grows.
There are no shortcuts in the secondary market. But with consistent, informed analysis, the secondary market is where patient Nepali investors build lasting wealth.
सूचित लगानीको लागि, विश्वसनीय विश्लेषण।
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⚠️ Disclaimer: This article is for financial education and informational purposes only. It does not constitute personalized investment advice. All trading involves risk of capital loss. Commission rates, tax rates, and fees are based on SEBON regulations current as of May 2026 and are subject to change — always verify with your broker or SEBON's official website before trading. SS Holdings & Investment Pvt. Ltd. is not liable for any financial decisions made based on this content.
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