Daily Summary: Index at the Highest of All Highs; What Does Technical Analysis Tell Us?

Tue, Apr 6, 2021 3:42 PM on Stock Market, Latest,

The NEPSE index gained 15.72 points today and closed at 2,674.46. This is the highest closing ever in the history of NEPSE. The index had created a new high just yesterday.

The index opened at 2,675.57 and shortly made the intraday low at 2,642.17. Although the index gained from yesterday's closing, the market-open today itself is the intraday high.

The index has created a new high by gaining a few points from the high created in the last swing. However, the index is yet to show decisive signs of bullish continuation. In a way, the index is still on the same supply zone created in the previous peak.

Chart from SSPro

Fibonacci retracement shows that the nearest target (or resistance) of the index is at 2,856.45 level. After the index breaks up from the zone, one can safely expect a newer high.

Furthermore, it is apparent that the volume witnessed today and in the last few sessions is still lower than the volume created in the previous peak. As a chart reader, one would have been more confident of a bullish continuation if the volume had surpassed the previous levels. In absence of decisive volume confirmation, one can only wait and watch the market movement that unfolds in the upcoming session.

16,108,499 shares traded hands via 81,753 transactions. The trading of 213 scrips brought the total market turnover to a little over Rs. 7.47 Arba. This is higher than yesterday's turnover of Rs. 7.29 Arba.

While the float index gained 1.13 points and closed at 183.88, the Sensitive index is at 476.18 after gaining 4.34 points.

Nepal Infrastructure Bank Limited (NIFRA) has the highest individual scrip turnover of a little over Rs. 39.8 crores. The shares of National Hydro Power Company Limited (NHPC) traded the most.

All the ten highest gainers have technically hit the 10% positive circuit today. Meanwhile, Salt Trading Corporation Limited (STC) lost the most 10% today and hit the negative circuit breaker.

Six sectors have lost today while seven others closed green. "Trading" lost the most 9.46% and "Hotels and Tourism" gained the most 5.62%. The Hydropower sector also showed a significant 4.46% gain today.