NEPSE Lost 186.23 Points This Week; What Does the Formation of Three Black Crows Pattern Say About the Upcoming Trend?

Fri, Oct 1, 2021 12:02 PM on Weekly Analysis, Stock Market,

NEPSE Index made 264.27 points volatility with the market reaching the highest 2844.09 and the lowest 2579.82. The index lost 186.23 points (6.60%) in this trading week. Last week market closed at 2819.65 points and this week closed at 2633.42 points on Thursday. 

Candlestick Pattern:

The three black crows candlestick pattern was formed on NEPSE, consisting of three consecutive bearish candles from Sunday to Tuesday. This pattern is considered a signal of the continuation of a bearish trend.

Exponential Moving Average:

NEPSE index is below both 5 days EMA and 20 days EMA. The Index below the moving average signals for Bearishness. Recently, 5 days EMA has crossed its 20 Days EMA from above, forming a Dead crossover pattern. The Dead cross is a technical pattern indicating the potential for a downtrend.

Relative Strength Index:

Relative Strength Index is a momentum oscillator that measures between zero and 100. Currently, the Relative Strength Index is at the 33.46 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 and the MACD line is below the signal line, this indicates a possibility of a trend reversal. A histogram is also in the negative zone.  MACD is indicating the possibility of 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

61.8% - 2696

78.6% - 2550

100% - 2356

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

Pivot Point- 2685

1st Resistance- 2792                    1st Support- 2577

2nd Resistance- 2950                   2nd Support- 2420

3rd Resistance- 3083                   3rd Support- 2288

Conclusion: All major technical indicators are supporting the downtrend. Major support is at the 2500 level.

Weekly Market Summary of NEPSE:

More than 5.21 crore unit shares worth Rs 26.09 Arba has been traded through 3.30 lakh transactions this week. The current market capitalization of NEPSE stands at Rs. 3,686,330.83 million.

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

The NEPSE index declined by 6.60% this week. Most of the indexes lost more than 4% of their value in a week.

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

Goodwill Finance Company Limited (GFCL) has the highest monthly Beta value of 2.36 followed by Union Hydropower Nepal Limited (UNHPL) and Ghalemdi Hydro Limited (GHL) with 2.29 and 2.26 beta values respectively.

Top Ten Gainers of the week:  

Manakamana Smart Laghubitta Bittiya Sanstha Limited (MKLB) is the top gainer of this week. MKLB closed at Rs. 2119.7 with Rs. 802.5 (60.92%) increment.

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


Top Ten Losers of the week:

Nabil Equity Fund (NEF) price has decreased by 30% and its LTP stands at Rs. 10.85. 

*Cash dividend book closure of NEF, NBF2 led the price adjust. Whereas, DDBL and AHPC price adjusted due to stock dividend book closure. 

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

Arun Valley Hydropower Development Company Limited (AHPC) is the top traded company of the week. A total of Rs. 81.86 crores worth of AHPC shares was traded this week.

Top Buyers Brokers of the Week:

Naasa Securities Co.Ltd (Broker No- 58) was the top buyer broker of this week and it has bought stocks worth Rs 1.72 Arba.

Top Buyer Brokers Top 10 Bought Companies:

Top Seller Broker 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 1.52 Arba.

Top Seller Brokers 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


Major Highlights of the week:

IPO of Buddha Bhumi Hydropower Concludes With 21,42,000 Applicants

Ridi Hydropower (RHPC) Proposes 12.6% Dividend for FY 2077/78

Mutual Funds of Nabil Invest Report Net Loss in Bhadra

Mutual Funds of CBIL Capital Report Decline in Net Profit in Bhadra

Civil Laghubitta (CLBSL) Proposes 20% Dividend for FY 2077/78

Coca-Cola announces new Dashain Campaign of Gratitude; Encourages consumers to share Dhanyabaad labeled Coke bottles

Hydroelectricity Investment and Development Company (HIDCL) Concluding Right Shares Auction Today

Laxmi Bank becomes ADB’s Leading Partner Bank of 2021 in Nepal for 2nd year in a row

Fall in NAV and Profit of "Sanima Large Cap Fund" and “Sanima Equity Fund”

Share Laganikarta Sangh Nepal Reprimands Abuse of Authority by NEPSE and Regulator; Urges Stakeholders to Lift Limit on Margin Loan and CD Ratio Provision

IPO for General Public: Madhya Bhotekoshi Jalavidyut Company issuing 90,00,000 units IPO shares from Ashwin 20

PPA will be signed on the basis of market certainty: Minister Bhusal

CBIL Capital Limited Proposes 25% Dividend for FY 2077/78; AGM Called on Kartik 05

Muktinath Bikas Bank signs agreement with Agantuk Resort of Dhulikhel; MoU to enable bank’s customers to receive attractive discount for resort’s hospitality services

IPO of Buddha Bhumi Hydropower Opening Today; What Do the Financials Tell About the Company?

IPO Allotment for Madhya Bhotekoshi Jalavidyut Company Concludes

IPO of Sahas Urja Limited Concludes With 24,74,436 Applicants

Censorship Concerns Detected in Chinese Phones; Lithuania Defense Ministry Recommends Throwing Them All Away: Reuters

Gurans Laghubitta (GLBSL) Proposes 17.796% Dividend for FY 2077/78

World Tourism Day: Diplomats from different countries arrive in Pokhara city

IPO Allotment Tomorrow for Locals Issue of Madhya Bhotekoshi Jalavidyut Company

9.51 MW Maibeni Hydropower Project starts commercial operations; IPO for locals oversubscribed by 3.63 times