Daily Market Summary: NEPSE Index Gains 2.82% and Closes at 2,591.42, Twenty-One Companies Hit Circuit Breaker

Sun, Dec 26, 2021 3:45 PM on Stock Market, Latest,

-ShareSansar

The NEPSE index closed at 2,591.42 today after gaining 71.2 points from last week's closing. This is a significant gain of 2.82% on the index. The index had gained 12.53 points last Thursday.

231 scrips traded hands via 62,021 transactions. The Float index is at 177.62 after gaining 2.65% while the Sensitive index gained 1.13% and is now at 482.74.

Nabil Bank Limited (NABIL) had the highest turnover of Rs. 32.07 crores closing at a market price of Rs. 1,524 per share. The shares of Arun Valley Hydropower Development Company Limited (AHPC) traded the most.

A total of 21 scrips have technically gained 10%, hence hitting the positive circuit breaker. Meanwhile, Gurkhas Finance Limited (GUFL) lost the most 5.57%. GUFL had lost 6.74% last Thursday.

Only "Hydropower" and "Finance" sector indices lost, with Finance losing the highest 1.12%. Among all other sector indices that closed green, "Life Insurance" gained the most 9.78%.

Technical Analysis Highlight

The index opened at 2,531.42 and did not trade any lower. While it went as high as 2,595.63, it ultimately closed at 2,591.42, which is still very near the intraday high. This has led to the formation of an extended green candle on the candlestick chart with a small upper wick. This is an optimistic signal after the formation of an indecisive small-body candle last Thursday.

A total of 8,601,956 shares exchanged hands amounting to Rs. 5.17 Arba in the turnover amount. This is higher than last Thursday's turnover of Rs. 4.49 Arba. Thus, today's upward move is also supported by Volume.

The Relative Strength Index (RSI) is at 54.64. The reading was at 48.96 last Thursday. Thus, the RSI reading has broken above 50 for the first time in a while, indicating intermediate-term upwards momentum.

Meanwhile, both the MACD line and the signal line are negative, i.e. below zero, with the MACD reading at -51.35. This reading was at -66.68 last Thursday. Nonetheless, it is important to note that the MACD line has crossed over the signal line last week already, hence indicating a mild bullish sentiment. The crossover would have been more significant if the MACD reading was positive.

Studying the price action, it can be inferred that mentionable resistance may now be found at the 2,670 index level. Also judging from the previous pivot highs and lows, it can be inferred that the next major resistance zone may be found in the 2,800 - 2,860 index range.

Meanwhile, the 2,500 index level that previously acted as price-action and psychological resistance may now act as the nearest support zone. If violated, the next support may show up from the 2,365 index level to the very recent pivot low, i.e. at 2,259.63.