NEPSE Ends the Week With Highest Turnover in History; Technical Analysis of the Index with Sector Comparison and Highlights

Fri, May 28, 2021 10:44 AM on Stock Market, Weekly Analysis, Featured,

-ShareSansar

This week market opened for 4 days with 111.85 points of volatility. The market reached the highest 2850.55 and the lowest 2738.70. NEPSE index gained 28.21 points (1.01%) in this trading week. Last week market closed at 2787.18 points and this week closed at 2815.39 points on Thursday. The market closed with the highest turnover of 14.77 Arba.

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 above both 5 days EMA and 20 days EMA. Nepse index above moving average signals for Bullishness. GOLDEN CROSS on 2^nd May 2021 is still valid. The Golden cross is a technical pattern indicating the potential for a major rally.

Relative Strength Index:

Relative Strength Index is a momentum oscillator that measures between zero and 100. Currently, the Relative Strength Index is at the 69.84 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 a positive zone. MACD line is above the signal line, this indicates a bullish signal. A histogram is also in a positive zone. Overall MACD is indicating upward 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

161.8% - 2922

100% - 2760

78.6% - 2704

61.8% - 2660

Turnover

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

Pivot Point- 2801

1^st Resistance- 2864 1^st Support- 2752

2^nd Resistance- 2913 2^nd Support- 2689

3^rd Resistance- 2969 3^rd Support- 2633

Conclusion: All major indicators are supporting an uptrend but major support is at 2675.

Weekly Market Summary of NEPSE:

More than 11.75 crore unit shares worth Rs 50.77 Arba have been traded through 5.22 lakh transactions this week. The current market capitalization of NEPSE stands at Rs. 3,906,768.04 Million.

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

The NEPSE index increased by 1.01% this week. The highest gaining sector of this week is the Hydropower sector with a rise of 8.87%.

Stock with the highest monthly Beta value from the Microfinance, Hydropower, Development Bank and Non-Life Insurance

Progressive Finance Limited (PROFL) has the highest monthly Beta value of 3.22 followed by Multipurpose Finance Company Limited (MPFL) and Sindhu Bikas Bank Limited (SINDU) with 2.82 and 2.80 beta value respectively.

Top Ten Gainers of the week:

Mountain Hydro Nepal Limited (MHNL) is the top gainer of this week. MHNL closed at Rs. 414 with Rs. 124 (42.76%) 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:

Samata Gharelu Laghubitta Bittiya Sanstha Limited's (SMATA) price has decreased by 11.09% and its LTP stands at Rs. 1668.

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

Hydroelectricity Investment and Development Company Limited (HIDCL) is the top traded company of the week. A total of Rs. 1.92 Arba worth of HIDCL shares were traded this week.