NEPSE Lost 76.78 Points (3.75%) This Week; Weekly Summary with Technical Analysis, Sector Comparison, Major Highlights, and More

Fri, Jun 17, 2022 3:24 PM on Stock Market, Weekly Analysis,

Part 1: Rundown and Technical Analysis

The market operated from Monday to Friday this week. However, the market will be operating 6 days a week from Sunday to Friday. From Sunday to Thursday, the shares will be traded from 11 a.m. to 3 p.m. On Fridays, however, shares will only be traded from 11 a.m. to 1 p.m from now onwards.

The NEPSE index closed at 1,971.38 this week after a loss of 76.78 points (3.75%). The index had closed at 2,048.16 last week with a loss of 1.47% from the week before that.

This week, the index went as high as 2,052.29 and as low as 1,946.47, hence witnessing volatility of 105.82 points. In the previous week, the index had seen a volatility of 98.78 points.

Analysis of Trend

Trend analysis is a method of Technical Analysis that helps in predicting the future movement that is based on the current ongoing trend data. Looking at the daily charts, the trend of the NEPSE index is in a downtrend. The index is making lower lowers every day.

Candlestick Charting and Volume

On the weekly candlestick chart, this week's market movement has formed a bearish candle with a small lower shadow. Last week's candle was a spinning top candle.

The highest intraday loss was 36.08 points on Tuesday with a turnover of 1.18 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 26.27. Meanwhile, the RSI reading on the weekly chart is 28.33.

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 -84.64. The MACD line is below the signal line.

Price Action

The index gained only on Thursday by 12.57 points. However, the Indexed followed the trend and continuously fall on other trading days.

The 1,930 to 1,880 zone may act as the nearest support.

Part 2: Insight into Important Data

More than 1.71 crores unit shares worth Rs. 5.59 Arba have been traded through 1.23 lakhs transactions this week. The current market capitalization of NEPSE stands at Rs. 2,810,696 million.

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

The NEPSE index declined by -3.75% this week. All the sectors closed in the red.

Stocks with the highest Monthly Beta

The top 3 companies with the highest beta are Kalika Laghubitta Bittiya Sanstha Limited (KMCDB), Samudayik Laghubitta Bittiya Sanstha Limited (SLBSL) and Progressive Finance Limited (PROFL) with 2.46, 2.40, and 2.14 respectively.

Top Ten Gainers of the week:

Adhikhola Laghubitta Bittiya Sanstha Limited (AKBSL) is the top gainer. AKBSL closed at Rs. 596.70 with Rs. 198.20 (49.74%) increment.

Top Ten Losers of the week:

Singati Hydro Energy Limited (SHEL) price has decreased by 14.07% and its LTP stands at Rs. 262.1.

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:

Nepal Doorsanchar Company Limited (NTC) is the top traded company of the week. A total of Rs. 36.67 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. 88.8 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. 85.1 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.