NEPSE Closed Above 2000 Levels with 1.71% Gain This Week; Weekly Summary with Technical Analysis, Sector Comparison, Major Highlights, and More

Fri, Mar 10, 2023 3:00 PM on Stock Market, Weekly Analysis,

Part 1: Rundown and Technical Analysis

This week, NEPSE traded for 3 days only as Monday and Wednesday was a public holiday. The index closed at 2,002.70 this week after a gain of 33.68 points (1.71%). The index closed at 1,969.02 last week with a loss of 2.65% from the week before that.

This week, the index went as high as 2,002.70 and as low as 1.935.49 hence witnessing volatility of 67.20 points. The index had seen the volatility of 73.93 points in the previous week.

Analysis of Trend and Volume

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 and mid-term trends are both down. The index is making lower lowers every day.

The highest intraday gain was 50.04 points on Thursday with a turnover of Rs 1.56 Arba, however, the total turnover stood at Rs 4.16 Arba this week.



Momentum Indicators

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 42.59. Meanwhile, the RSI reading on the weekly chart is 47.01.

On the other side, the MACD line is in the negative zone, i.e. below zero in the daily timeframe, but the MACD line and Signal line have made a crossover pattern and moving towards the negative zone with the MACD reading at -34.97. This indicates a bearish sentiment.

Moving Averages

The 5-day Moving Average of the NEPSE Index has crossed below its 20-day Moving Average from above forming a Death crossover. This is typically a bearish signal but requires further confirmation.

1,855 zone may act as the nearest support whereas, the 2100 zone will act as resistance.

Part 2: Insight into Important Data

The highest intraday gain was 50.04 points on Thursday with a turnover of Rs 1.565 Arba, whereas the total turnover of the week stood at Rs. 4.162 Arba. More than 1.24 crore unit shares have been traded through 93,407 transactions this week. The current market capitalization of NEPSE stands at Rs. 2,901,317.24 million i.e. Rs 29.01 Kharba.


NEPSE index and Sub-indices performance: (Incline is based on the previous week's close)

The NEPSE index inclined by 1.71% this week. Only "Manufacturing and Processing" is closed in red.

Stocks with the highest Monthly Beta

The top three companies with the highest beta are Joshi Hydropower Development Company Limited (JOSHI), Radhi Bidyut Company Limited (RADHI), and Shiva Shree Hydropower Limited (SSHL) with 2.396, 2.307, and 2.283 respectively.

Top Ten Gainers of the week:

Super Madi Hydropower Limited (SMHL) is the top gainer. SMHL closed at Rs. 381 with Rs. 82 (27.42%) increment.

Top Ten Losers of the week:

Chhimek Laghubitta Bittiya Sanstha Limited's (CBBL) price has decreased by 15.45% due to 22% bonus share adjustment and its LTP stands at Rs. 859.

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 Transactions:

Himalayan Distillery Limited (HDL) is the top-traded company of the week. A total of Rs. 23.56 Crores worth of HDL shares were traded this week.

Top Buyers Brokers of the Week:

Naasa Securities Co.Ltd (Broker No- 58) was the top buyer broker this week and it bought stocks worth Rs. 36.31 Crores.

Top 10 Bought Companies:

Top Seller Brokers of the Week:

Naasa Securities Co. Ltd (Broker No- 58) was the top seller broker for this week. The brokerage firm has sold stocks worth Rs. 24.57 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.