Week Concludes With Highest Volatility in History But Little Overall Index Movement (Technical Analysis With Sector Comparison, Scrip Analysis, and Highlights)

Fri, Sep 24, 2021 1:17 PM on Weekly Analysis,

-ShareSansar

This was the week with the highest weekly volatility in NEPSE's history. Total volatility of 266.83 points was witnessed with the high at 2,882.32 and the low at 2,615.49. The index gained 7.27 points (0.26%) in this trading week. Last week the market closed at 2812.38 points and this week closed at 2819.65 points on Thursday.

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 41.37 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.

Turnover

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- 2772

1^st Resistance- 2929 1^st Support- 2662

2^nd Resistance- 3039 2^nd Support- 2505

3^rd Resistance- 3172 3^rd Support- 2371

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

Weekly Market Summary of NEPSE:

More than 7.44 crore unit shares worth Rs 29.76 Arba has been traded through 3.63 lakh transactions this week. The current market capitalization of NEPSE stands at Rs.3,947,150.79 Million.

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

The NEPSE index increased by 0.26% this week. The banking sector gained the most this week.

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

Union Hydropower Company Limited (UNHPL) has the highest monthly Beta value of 2.31 followed by Mountain Hydro Nepal Limited (MHNL) and Himalayan Power Partner Limited (HPPL) with 2.22 and 2.22 beta value 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. 1317 with Rs. 417.3 (46.37%) 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:

United Idi-Mardi and R.B. Hydropower Limited (UMRJ) price have decreased by 10.69% and its LTP stands at Rs. 610.

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. 1.06 Arba worth of AHPC shares was traded this week.