Correction seen on NEPSE after four straight weekly gain; United Finance rises by 33.67%; Naasa Securities remains top buying and selling broker (Weekly Wrap Up)

Fri, Sep 25, 2020 10:40 AM on Stock Market, Weekly Analysis, Featured,

NEPSE index declined 10.91 points (0.69%) in the trading week between 20th September to 24th September 2020. Last Week market closed at 1572.18 and this week closed at 1561.27 points on Thursday. 70.09 points volatility was witnessed this week, with the market reaching the highest 1605.12 and the lowest 1535.03.

Candlestick pattern:

This week, 1 green and 4 red candles were formed. Three black crows candle pattern was formed on Tuesday. The three black crows pattern occurs when bears overtake the bulls during three consecutive trading sessions.

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 above both 5 days EMA and 20 days EMA. Nepse Index above moving average signals for Bullishness. GOLDEN CROSS made on 20th August 2020 is still valid. The Golden cross is a technical pattern indicating the potential for a major rally.

Moving Average Convergence and Divergence:

MACD line (blue) and the signal line (red line) are in the Positive zone.  The signal line has touch the MACD line, this indicates the possibility of bearish crossover but still need to wait for confirmation till crossover.

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% - 1414

61.8% - 1480

78.6% - 1565

100% - 1667


Average Turnover of this week: Rs 2.43 arba

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

Pivot Point- 1567 point

1st Resistance- 1599 point                1st Support- 1529 point

2nd Resistance- 1637 point               2nd Support- 1497 point

3rd Resistance- 1672 point              3rd Support- 1462 point

Conclusion: Most of the indicators are in favor of low volatility. The market may be trading in 1500 -1670 range this week.

Listing of the Week:

Weekly Market Summary of NEPSE:

More than 4.04 crore unit shares of worth Rs 12.15 arba has been traded through 2.61 lakh transactions this week. The current market capitalization of NEPSE stands at Rs. 2,080,128.26 Million.

Sector-wise breakdown of the turnover of this week:

The commercial bank sector made 30.65% of the total turnover this week followed by the Hydropower sector with 18.99% of the total turnover.

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

The NEPSE index increased by a meager 0.69% this week. Most of the sub-indices decreased this week. The top looser sector of this week is the Hotel sector with a fall of 8% followed by a non-life Insurance Sector with a fall of 2.66%. The trading sector rises by 7.15% this week.

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

Reliance Life Insurance Limited (RLI) has the highest monthly Beta value of 3.84 followed by Shree Investment and Finance Limited (SIFC) and ICFC Finance Limited (ICFC) with 2.49 and 2.15 beta value respectively.

Top Ten Gainers of the week:  

United Finance Limited (UFL) is the top gainer of this week. UFL closed at Rs 262 with Rs 66 (33.67%) increment.

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

SS Pro

Top Ten Losers of the week:

Liberty Energy Company Limited (LEC) price has decreased by 25.67% and its LTP stands at Rs 223.

Top Stocks by Turnover, Volume, and Number of Transaction:

Nepal Bank Limited (NBL) is the top traded company of the week. A total Rs 72.81 crore worth of NBL shares were traded this 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 76.42 crore.

Top Buyer Brokers Top 10 Bought Companies:

Top Seller Broker of the Week:

Naasa Securities (Broker No- 58) is the top seller broker for this week. The brokerage firm has sold stocks worth Rs 82.50 crore.

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