NEPSE Lost 3.28 Points (0.17%) This Week; Weekly Summary with Technical Analysis, Sector Comparison, Major Highlights, and More

Fri, Nov 25, 2022 11:18 AM on Stock Market, Weekly Analysis,

Part 1: Rundown and Technical Analysis

This week, the market traded for only three days due to the election. The NEPSE index closed at 1,933.55 this week after a loss of 3.28 points (0.17%). The index closed at 1,936.83 last week with a gain of 2.28% from the week before.

This week, the index went as high as 1,960.85 and as low as 1,913.28, hence witnessing volatility of 47.57 points. The index had seen a volatility of 60.03 points in the week before that.

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 trend is showing uptrend but mid-term trend of the NEPSE index is still down.

The highest intraday gain was 11.56 points on Thursday with a turnover of Rs 0.92 Arba on a single trading day, whereas, in the entire week the total turnover amount stood Rs 3.3 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 54.99. Meanwhile, the RSI reading on the weekly chart is 42.09.

On the other side of things, the MACD line is in the Positive zone, i.e. above zero in the daily timeframe, moving upward to the positive zone with the MACD reading at 3.07. The MACD line is above the signal line. This indicates a weakness in bearish sentiment.

Moving Averages

NEPSE index is above both 5 days Exponential Moving Average (EMA) and 20 days EMA. The index above these moving averages signals bullishness. The 5 days EMA and the 20 Days EMA are overlapping each other with  a Golden Crossover pattern forming. The Golden Cross is a technical pattern indicating the potential for an uptrend.

1,830 to 1,800 zone may act as the nearest support whereas, 2,000 to 2080 zone will act as resistance.

Part 2: Insight into Important Data

More than 91.72 lakh unit shares worth Rs. 3.3 Arba have been traded through 60,614 transactions this week. The current market capitalization of NEPSE stands at Rs. 2,781,299.84 million i.e. Rs 27.81 Kharba.

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

The NEPSE index declined by 0.17% this week. Seven sector indices closed green.

Stocks with the highest Monthly Beta

The top three companies with the highest beta are United Modi Hydropower Limited (UMHL), Universal Power Company Limited (UPCL) and Panchakanya Mai Hydropower Limited (PMHPL) with 2.818, 2.689 and 2.662 respectively.

Top Ten Gainers of the week:

Ghalemdi Hydro Limited (GHL) is the top gainer. GHL closed at Rs. 219 with Rs. 30.2 (16%) increment.

Top Ten Losers of the week:

National Life Insurance Company Limited (NLICL) price has decreased by 14.19% and its LTP stands at Rs. 514. The company had closed its books for 15% bonus share, due to which the price was adjusted by NEPSE.

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:

Himalayan Distillery Limited (HDL) is the top traded company of the week. A total of Rs. 26.50 crores worth of HDL shares were traded this week.

Top Buyers Brokers of the Week:

South Asian Bulls Pvt. Limited (Broker No- 43) was the top buyer broker this week and it has bought stocks worth Rs. 28.25 crores.

Top 10 Bought Companies:

Top Seller Brokers of the Week:

South Asian Bulls Pvt. Limited (Broker No- 43) was the top seller broker for this week. The brokerage firm has sold stocks worth Rs. 27.70 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.