Weekly Wrap Up: Market Trend Was a Correction At Best (Technical Analysis with Overall Sector, Broker, and Company-wise Summary)

Fri, Apr 23, 2021 4:37 PM on Stock Market, Weekly Analysis, Latest,

-ShareSansar

150.14 points volatility was witnessed this week, with the market reaching the highest 2759.89 and the lowest 2609.75. NEPSE index lost 87.39 points (3.19%) in this trading week. Last Week market closed at 2735.39 points and this week closed at 2648 points on Thursday.

Exponential Moving Average:

We have used EMA's of 5 days' time period (blue line), 20 days' time period (red line). At present, NEPSE Index is below 5 days EMA but above 20 days EMA. Values below shorter moving average signals for earlier indication of possibilities of starting of bearishness, but still need to wait till Nepse to close below 20 days EMA.

Relative Strength Index:

Relative Strength Index is a momentum oscillator that measures between zero and 100. Currently, the Relative Strength Index is at the 55.65 level. Traditionally the RSI is considered overbought when above 70 and oversold when below 30.

Moving Average Convergence and Divergence:

MACD line (blue) and the signal line (red line) are in the positive zone. The MACD line has crossed the signal line, this indicates a bearish signal. The histogram is also in the negative zone. Overall MACD is indicating downward momentum.

Fibonacci retracement:

A Fibonacci retracement refers to areas of support or resistance. The indicator is useful because it can be drawn between any two significant price points, such as a high and a low, and then the indicator will create the levels between those two points.

The Fibonacci retracement levels are

38.2% - 2612

50% - 2566

61.8% - 2520

100% - 2371

Turnover

Support and resistance level for the next trading week according to Pivot Point.

Pivot Point- 2672

1^st Resistance- 2735 1^st Support- 2585

2^nd Resistance- 2822 2^nd Support- 2522

3^rd Resistance- 2897 3^rd Support- 2447

Conclusion: All major indicators are supporting the short-term bearish trend. We can aspect the market to test 61.8% level of Fibonacci next week.

Listings of the week:

Weekly Market Summary of NEPSE:

More than 7.29 crore unit shares worth Rs 32.79 Arba has been traded through 3.74 lakh transactions this week. The current market capitalization of NEPSE stands at Rs. 3,666,699.19 Million.

Sector-wise breakdown of the turnover of this week:

The Commercial Bank sector made 29.16% of the total turnover this week followed by the Microfinance sector with 16.08% of the total turnover.

NEPSE index and Sub-indices performance: (Decrement here is based on the previous week closed value)

The NEPSE index decreased by 3.19% this week.

Stock with the highest monthly Beta value from the Microfinance and Non-life insurance

NIC Asia Laghubitta Bittiya Sanstha Limited (NICLBSL) has the highest monthly Beta value of 2.70 followed by WOMI Laghubitta Bittiya Sanstha Limited (WOMI) and Prudential Insurance Company Limited (PICL) with 2.46 and 2.34 beta value respectively.

Top Ten Gainers of the week:

Mahila Laghubitta Bittiya Sanstha Limited (MLBSL) is the top gainer of this week. MLBSL closed at Rs. 1208 with Rs. 734 (60.76%) increment.

All the analysis is done with the SS Pro Software. To know more about the software, click on the link below

SSpro

Top Ten Losers of the week:

Chandragiri Hills Limited's (CGH) price has decreased by 14.26% and its LTP stands at Rs. 2135.

Top Stocks by Turnover, Volume, and Number of Transaction:

NIC Asia Laghubitta Bittiya Sanstha Limited (NICLBSL) is the top traded company of the week. A total of Rs. 1.29 Arba worth of NICLBSL shares was traded this week.