Part 1: Rundown and Technical Analysis
The NEPSE index closed at 2,068.27 this week after a gain of 30.35 points (1.49%). The index closed at 2,037.92 last week with a loss of 3.58% from the week before.
This week, the index went as high as 2,088.22 and as low as 2004.29, hence witnessing volatility of 83.93 points. The index had seen a volatility of 102.17 points in the previous week.
Analysis of Trend
Trend analysis is a technical analysis method that helps to predict future movement based on the current ongoing trend data. Looking at the daily charts, the short-term trend of the NEPSE index is down.
Candlestick Charting and Volume
This week's market movement has formed a spinning top on the weekly candlestick chart. Spinning tops are a sign of indecision, the upper and lower shadows indicate there wasn’t a meaningful change between the open and the close.
The highest intraday gain was 55.85 points on Monday with a turnover of Rs 2.43 Arba. This week, the highest turnover was on Tuesday with 2.74 Arba, with a total turnover of 10.50 Arba.
The relative strength index (RSI) is a momentum indicator used in technical analysis that measures the magnitude of recent price changes to evaluate overbought or oversold conditions in the price of a stock or index. Traditional interpretation and usage of the RSI are that values of 70 or above indicate that a security is becoming overbought or overvalued and may be primed for a trend reversal or corrective pullback in price. An RSI reading of 30 or below indicates an oversold or undervalued condition.
The RSI reading on the daily timeframe is 48.91. Meanwhile, the RSI reading on the weekly chart is 40.99.
On the other side of things, the MACD line is in the positive zone, i.e. above zero in the daily timeframe, with the MACD reading at -5.77. The MACD line has crossed the signal line. This indicates a bearish sentiment.
NEPSE index is below both 5 days Exponential Moving Average (EMA) and 20 days EMA. The index below these moving averages signals bearishness. The 5 days EMA is below the 20 Days EMA with a Dead Crossover pattern forming. The Dead Cross is a technical pattern indicating the potential for a downtrend.
2,000 to 1,907 zone may act as the nearest support whereas, 2,200 zone will act as resistance.
Part 2: Insight into Important Data
More than 2.55 crores unit shares worth Rs. 10.50 Arba have been traded through 1.92 lakhs transactions this week. The current market capitalization of NEPSE stands at Rs. 2,963,658.39 million.
NEPSE index and Sub-indices performance: (Incline is based on the previous week's close)
The NEPSE index inclined by 1.49% this week. Thirteen sector indices closed green.
Stocks with the highest Monthly Beta
The top 3 companies with the highest beta are Panchakanya Mai Hydropower Limited (PMHPL), Green Development Bank Limited (GRDBL) and Janaki Finance Company Limited (JFL) with 2.441, 2.421, and 2.343 respectively.
Top Ten Gainers of the week:
Upper Hewakhola Hydropower Company Limited (UHEWA) is the top gainer. UHEWA closed at Rs. 226.4 with Rs. 83.2 (58.1%) increment.
Top Ten Losers of the week:
NMB 50 (NMB50) price has decreased by 20.7% and its LTP stands at Rs. 10.
All the analysis is done with the SS Pro Software. To know more about the software, click on the link below
Top Stocks by Turnover, Volume, and Number of Transaction:
Ridi Power Company Limited (RIDI) is the top traded company of the week. A total of Rs. 70.32 crores worth of RIDI shares were traded this week.
Top Buyers Brokers of the Week:
Naasa Securities Company Limited (Broker No- 58) was the top buyer broker this week and it has bought stocks worth Rs. 74.67 crores.
Top 10 Bought Companies:
Top Seller Brokers of the Week:
Naasa Securities Company Limited (Broker No- 58) was the top seller broker for this week. The brokerage firm has sold stocks worth Rs. 66.68 crores.
Top 10 Sold Companies:
All the analysis is done with the SS Pro Software. To know more about the software, click on the link below.