Correction seen on NEPSE after five straight week rallies; Microfinance and Non-Life Insurance sector decreased heavily; NLIC traded most (Weekly Wrap Up)

Fri, Mar 6, 2020 12:25 PM on Featured, Stock Market, Weekly Analysis,

NEPSE Index declined 196.47 points (12.04%) in the trading week between 1st March to 5th March, 2020. This week market opened at 1632.17 points and close at 1408.82 points on Thursday.

This week's market statistics:

Index Open- 1632.17 points                Index Close- 1435.70 points

Index High- 1667.74 points                 Index Low- 1408.82 points

Candlestick pattern:

This week, 1 green and 4 red candles were formed. Spinning top candlestick was formed on last trading day. The candlestick pattern represents indecision about the future direction. Neither the buyers nor the sellers could gain the upper hand. The buyers pushed the price up during the period, and the sellers pushed the price down during the period, but ultimately the closing price ended up very close to the open.

Exponential Moving Average:

We have used EMA's of 5 days' time period (blue line), 20 days' time period (red line). At present, NEPSE Index is below both 5 days EMA and 20 days EMA. Values below moving average signals for bearishness.

Moving Average Convergence and Divergence:

MACD line (blue) and the signal line (red line) are in Positive zone.  Signal line have crossed the MACD line, this indicates a possibility of bearish signal. Histogram is in negative zone. Overall MACD is indicating downward momentum.

Fibonacci retracement:

A Fibonacci retracement refers to areas of support or resistance. The indicator is useful because it can be drawn between any two significant price points, such as a high and a low, and then the indicator will create the levels between those two points.

The Fibonacci retracement levels are

50% - 1386

61.8% - 1319

78.6% - 1225

Turnover

Average Turnover of this week: Rs 3.24 arba

Support and resistance level for next trading week according to Pivot Point.

Pivot Point- 1503 point

1st Resistance- 1598 point                1st Support- 1339 point

2nd Resistance- 1762 point               2nd Support- 1244 point

3rd Resistance- 1857 point              3rd Support- 1080 point

Conclusion:  NEPSE is in correction mood and have a strong support at 1350.

 

Weekly NEPSE Movement:

Weekly Market Summary of NEPSE

More than 3.84 crore unit shares of worth Rs 16.21 arba has been traded through 1.43 lakhs transactions this week. The current market capitalization of NEPSE stands at Rs. 1,832,855.60 Million.

Sector-wise breakdown of the turnover of this week:

The banking sector made 44.084% of the total turnover this week followed by Life Insurance sector with 16.703% of the total turnover.

NEPSE index and Sub-indices performance: (Increment here is based on the previous week closed value)

The NEPSE index decreased by massive 12.04% this week. All the indices decreased this week. The top looser sector of this week is microfinance sector with a massive fall of 16.10% followed by Non Life Insurance sector with fall of 15.15%.

All the analysis are done with the SS Pro Software. To know more about the software click on the link below

SS Pro

Stock with the highest monthly Beta value from the Banking, Insurance & Finance Sector

Everest Bank Limited (EBL) has the highest monthly Beta value of 1.57 followed by First Microfinance Company Limited (FMDBL) with 1.54 beta value.

Top Ten Gainers of the week:  

Manjushree Finance Limited (MFIL) is the top gainer of this week. MFIL closed at Rs 319 with Rs 66 (26.09%) increment.

Top Ten Losers of the week:

NMB Microfinance Limited (NMBMF) price has decreased by 26.25% and its LTP stands at Rs 823.

Top Stocks by Turnover, Volume and Number of Transaction:

Nepal Life Insurance Company Limited (NLIC) is the top traded company of the week. Total Rs 1.45 arba worth of NLIC shares were traded this week. 

Listing of the Week:

Top Buyers Brokers of the Week:

Naasa Securities (Broker No- 58) was the top buyer broker of this week and it has bought stocks of worth Rs 1.04 arba.

Top Buyer Brokers Top 10 Bought Companies:

Top Seller Broker of the Week:

Online Securities (Broker No- 49) is the top seller broker for this week. The brokerage firm has sold stocks of worth Rs 1.35 arba.

Top Seller Brokers Top 10 Sold Companies:

Top Companies with Highest Market Capitalizations:

All the analysis are done with the SS Pro Software. To know more about the software click on the link below

SS Pro