Part 1: Rundown and Technical Analysis

The NEPSE index closed at 2,037.92 this week after a decline of 75.63 points (3.58%). The index closed at 2,113.55 last week with a loss of 1.26% from the week before.

This week, the index went as high as 2,140.09 and as low as 2037.92, hence witnessing volatility of 102.17 points. The index had seen a volatility of 114.98 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 short-term trend of the NEPSE index is down.

Candlestick Charting and Volume

This week's market movement has formed a bearish candle with no tail on the weekly candlestick chart. The candle with no tail indicates sellers dominate this week. Last week's candle was a  long-headed candle.

The highest intraday loss was 43.35 points on Tuesday with a turnover of Rs 2.81 Arba. This week, highest turnover was on Monday with 2.85 Arba, with a total turnover of 12.04 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 41.97. Meanwhile, the RSI reading on the weekly chart is 39.13.

On the other side of things, the MACD line is in the positive zone, i.e. above zero in the daily timeframe, with the MACD reading at 8.80. The MACD line has crossed 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 the formation of a Dead Crossover pattern. The Dead Cross is a technical pattern indicating the potential for a downtrend.

1,907 to 1,835 zone may act as the nearest support whereas, 2,200 zone will act as resistance.

Part 2: Insight into Important Data

More than 3.02 crores unit shares worth Rs. 12.04 Arba have been traded through 2.07 lakhs transactions this week. The current market capitalization of NEPSE stands at Rs. 2,909,712.11 million.

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

The NEPSE index declined by 3.58% this week. All sector indices closed red.

Stocks with the highest Monthly Beta

The top 3 companies with the highest beta are Green Development Bank Limited (GRDBL), Guheswori Merchant Banking & Finance Limited (GMFIL) and Shree Investment Finance Company Limited (SIFC) with 2.344, 2.384, and 2.326 respectively.

Top Ten Gainers of the week:

Himalayan Hydropower Limited (HHL) is the top gainer. HHL closed at Rs. 333.60 with Rs. 105.6 (46.32%) increment.

Top Ten Losers of the week:

Citizen Investment Trust (CIT) price has decreased by 24.78% and its LTP stands at Rs. 2,192.

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:

Shivam Cements Limited (SHIVM) is the top traded company of the week. A total of Rs. 61.86 crores worth of SHIVM shares were traded this week.

Top Buyers Brokers of the Week:

Naasa Securities Company Limited (Broker No- 58) was the top buyer broker this week and it has bought stocks worth Rs. 75.16 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. 76.73 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