NEPSE bounces back from 1219; Technical calls it strong support
Mon, Feb 13, 2017 4:23 PM on Latest, Featured, NEPSE News, Stock Market,
Nepal Stock Exchange Limited (NEPSE) Index has bounced back from its intra-day and a year low of 1218.86 today, to end the trading at 1278.98. The market today opened at 1252.50 and started falling continuously till the end of third trading hour. However, in the last hour only, the market rose by almost 60 points. The turnover stood above Rs 50.24 crore. Overall, NEPSE index gained 26.48 points today (2.11%).
Today, 2.01 lakh units of Arun Finance Promoter shares (ARUNPO) and 75,550 units of NMB Sulav Investment Fund-1 (NMBSF1) were traded the most. In terms of turnover, Nepal Bangladesh Bank (NBB) and Bank of Kathmandu Lumbini (BOKL) were on the top of the list. Altogether, 13.03 lakh unit shares were traded through 5,838 transactions today. Swabalamban Bikas Bank (SWBBL), Siddhartha Insurance Limited (SIL), United Insurance (UIC) and Prudential Insurance Limited (PICL) gained the most today while Sagarmatha Insurance (SIC), Nerude Laghubitta Bikas Bank (NLBBL) and Janautthan Samudayic Laghubitta (JSLBB) lost the most.
Today, the sensitive index rose by 5.97 points, whereas float index surged by 1.92 points. All the sub-indices except Hotels, Finance and Manufacturing ended in green.
Technical Viewpoint
As the market rebounded from 1219 today, technical analysts call it a strong support zone. This zone had acted as a strong resistance earlier, as the market struggled to enter this zone last year. Thus, this can now act as a strong support zone. Similarly, 78.6% Fibonacci retracement of price swing from 1022 to 1881 falls around 1200 level. The candlestick formed today shows a big shadow, which again interprets that there might be high possibility for the market to be stable at this level and stop a further fall.
However, the ups and downs in the market are the result of collective sentiments. Thus, whether it can be called as just a correction or a reversal is yet to be seen.
Today, the sensitive index rose by 5.97 points, whereas float index surged by 1.92 points. All the sub-indices except Hotels, Finance and Manufacturing ended in green.
Technical Viewpoint
As the market rebounded from 1219 today, technical analysts call it a strong support zone. This zone had acted as a strong resistance earlier, as the market struggled to enter this zone last year. Thus, this can now act as a strong support zone. Similarly, 78.6% Fibonacci retracement of price swing from 1022 to 1881 falls around 1200 level. The candlestick formed today shows a big shadow, which again interprets that there might be high possibility for the market to be stable at this level and stop a further fall.
However, the ups and downs in the market are the result of collective sentiments. Thus, whether it can be called as just a correction or a reversal is yet to be seen.
