Part 1: Rundown and Technical Analysis

The market operated for the 6 trading days this week. The market is open from Sunday to Friday and closed on Saturdays every week.

The NEPSE index closed at 1,862.06 this week after a loss of 109.32 points (5.55%). The index had closed at 1,971.38 last week with a loss of 3.75% from the week before that.

This week, the index went as high as 1,973.79 and as low as 1,807.18, hence witnessing volatility of 166.61 points. The index had seen a volatility of 105.82 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 trend of the NEPSE index is still in a downtrend.

Candlestick Charting and Volume

This week's market movement has formed a bearish long candle with a lower shadow on the weekly candlestick chart. A bearish candlestick indicates that the bears had control and drove the Index down.

Long-legged doji candle has formed on Friday on a daily chart. A part of the doji family, a long-legged doji candlestick is formed when the opening and closing prices are almost the same. A long-legged doji has long wicks on both sides, up and down, and a small body.

The highest intraday gain was 39.93 points on Tuesday with a turnover of Rs 1.25 Arba.

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 26.08. Meanwhile, the RSI reading on the weekly chart is 25.62. No diversion has been seen in the RSI in relation to the index, thus invalidating any attempt toward the prediction of a reversal. Furthermore, the RSI readings in the daily and weekly charts also say very little other than the obvious fact that the sentiment has been pessimistic in the last few weeks.

On the other side of things, the MACD line is still negative, i.e. below zero in the daily timeframe, with the MACD reading at -95.26. The MACD line is below the signal line.

Price Action

The index followed the trend and continuously fell this week. The last candle formed this week is a long-legged doji. A long-legged doji candlestick pattern is one such pattern that affirms the market has entered a period of indecision with no viable direction in price action.

1,800 to 1,670 zone may act as the nearest support.

Part 2: Insight into Important Data

More than 2.52 crores unit shares worth Rs. 7.63 Arba have been traded through 1.65 lakhs transactions this week. The current market capitalization of NEPSE stands at Rs. 2,654,828.99 million.

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

The NEPSE index declined by -5.55% this week. All the sectors closed in the red.

Stocks with the highest Monthly Beta

The top 3 companies with the highest beta are Liberty Energy Company Limited (LEC), Dibyashwari Hydropower Company Limited (DHPL) and Union Hydropower Company Limited (UNHPL) with 2.389, 2.385, and 2.347 respectively.

Top Ten Gainers of the week:

CYC Nepal Laghubitta Bittiya Sanstha Limited (CYCL) is the top gainer. CYCL closed at Rs. 655 with Rs. 217.7 (49.78%) increment.

Top Ten Losers of the week:

River Falls Power Limited (RFPL) price has decreased by 21.98% and its LTP stands at Rs. 213.

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

SSpro

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

Nepal Doorsanchar Company Limited (NTC) is the top traded company of the week. A total of Rs. 37.18 crores worth of NTC shares were traded this week.

Top Buyers Brokers of the Week:

Imperial Securities Co. Pvt. Limited (Broker No- 45) was the top buyer broker this week and it has bought stocks worth Rs. 98.54 crores.

Top 10 Bought Companies:

Top Seller Brokers of the Week:

Imperial Securities Co Pvt. Limited (Broker No- 45) was the top seller broker for this week. The brokerage firm has sold stocks worth Rs. 91.6 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.

SSpro