Nepal, Feb. 8 -- The Nepal Stock Exchange (NEPSE) is well off its lows from 2022. It is too soon to conclude if it is pricing in better economic fundamentals in the coming quarters. For now, the move could be technical. The index peaked at 3,227 in August 2021, followed by a 44-percent collapse through June 2022 when it tagged 1,807. Since that low, 1,800 attracted bids thrice-in September 2022 and May and November last year-even as rallies were sold just north of 2,200 in August 2022, January and July last year and again this January. On January 17, the NEPSE hit 2,215 and pulled back, dropping as low as 2,054 on February 4. The bulls need to defend horizontal support just north of 2,000.

Resistance at the upper end of the 1,800-2,200 r...