NEPSE Lost 26.49 Points (1.42%) This Week; Weekly Summary with Technical Analysis, Sector Comparison, Major Highlights, and More

Fri, Oct 21, 2022 12:45 PM on Stock Market, Weekly Analysis,

Part 1: Rundown and Technical Analysis

The NEPSE index closed at 1,854.14 this week after a loss of 26.49 points (1.42%). The index closed at 1,870.63 last week with a gain of 0.91% from the week before.

This week, the index went as high as 1,871.59 and as low as 1,834.41, hence witnessing volatility of 37.18 points. The index had seen a volatility of 59.58 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 trend of the NEPSE index is down.

The highest intraday loss was 12.81 points on Wednesday with a turnover of Rs 0.64 Arba, with a total turnover of 2.47 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 38.59. Meanwhile, the RSI reading on the weekly chart is 33.16.

On the other side of things, the MACD line is in the negative zone, i.e. below zero in the daily timeframe, with the MACD reading at -28. The MACD line is below the signal line. This indicates a bearish sentiment.

Moving Averages

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. The Dead Cross signal was generated on 9th of august is still valid.

1,830 to 1,800 zone may act as the nearest support whereas, 2,000 zone will act as resistance.

Part 2: Insight into Important Data

More than 79.04 lakhs unit shares worth Rs. 2.47 Arba have been traded through 67,955 transactions this week. The current market capitalization of NEPSE stands at Rs. 2,652,385.79 million.

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

The NEPSE index declined by 1.42% this week. Thirteen sector indices closed red.

Stocks with the highest Monthly Beta

The top 3 companies with the highest beta are Saptakoshi Development Bank Limited (SAPDBL), Guheswori Merchant Banking & Finance Limited (GMFIL) and Samriddhi Finance Company Limited (SFCL) with 2.586, 2.559, and 2.470 respectively.

Top Ten Gainers of the week:

Sayapatri Hydropower Limited (SPHL) is the top gainer. SPHL closed at Rs. 259.1 with Rs. 64.3 (33.01%) increment.

Top Ten Losers of the week:

People's Power Limited (PPL) price has decreased by 23.62% and its LTP stands at Rs. 217.

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:

Everest Bank Limited (EBL) is the top traded company of the week. A total of Rs. 12.76 crores worth of EBL shares were traded this week.

Top Buyers Brokers of the Week:

Dynamic Money Managers Securities Pvt.Ltd (Broker No- 44) was the top buyer broker this week and it has bought stocks worth Rs. 17.48 crores.

Top 10 Bought Companies:

Top Seller Brokers of the Week:

Dynamic Money Managers Securities Pvt.Ltd (Broker No- 44) was the top seller broker for this week. The brokerage firm has sold stocks worth Rs. 24.43 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.