Weekly Wrap-up: Declining Turnover in a Week Dominated by Red Days: Consolidation or Reversal

Fri, Dec 11, 2020 1:43 PM on Stock Market, Weekly Analysis, Featured,

-ShareSansar

NEPSE Index lost 91.43 points (4.45%) in this trading week. Last Week market closed at 2055.45 points and this week closed at 1964.02 points on Thursday. 137.09 points volatility was witnessed this week, with the market reaching the highest 2051.51 and the lowest 1914.42.

Candlestick pattern:

Two green candles and three red candles were formed this week.

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.

Moving Average Convergence and Divergence:

MACD line (blue) and the signal line (red line) are in the Positive zone. The signal line has crossed the MACD line, this indicates a bearish signal. Since the MACD line is converging and just touches the Signal line, need to wait for confirmation till complete crossover.

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

23.6% - 1889

38.2% - 1747

50% - 1632

78.6% - 1354

100% - 1146

Turnover:

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

Pivot Point- 1976 point

1^st Resistance- 2038 point 1^st Support- 1901 point

2^nd Resistance- 2113 point 2^nd Support- 1839 point

3^rd Resistance- 2250 point 3^rd Support- 1770 point

Conclusion: We can aspect the market to have less volatility than in past weeks. 2000 figure will work as a major phycological resistance level.

Weekly Market Summary of NEPSE:

More than 6.06 crore unit shares worth Rs 28.48 Arba has been traded through 2.56 lakh transactions this week. The current market capitalization of NEPSE stands at Rs. 2,633,082.12 Million.

Sector-wise breakdown of the turnover of this week:

The commercial bank's sector made 23.49% of the total turnover this week followed by the Others sector with 20.72% of the total turnover.

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

The NEPSE index decreased by 4.45% this week. The top loser sector of this week is the Trading sector with a fall of 8.19% followed by Others sector with a fall of 7.55%. The top gainer sector of this week is the Hydropower sector with a rise of 2.44%.

Stock with the highest monthly Beta value from the Banking, Microfinance & Insurance

National Life Insurance Company Limited (NLICL) has the highest monthly Beta value of 1.64 followed by Neco Insurance Company Limited (NIL) and Forward Microfinance Laghubitta Bittiya Sanstha Limited (FOWAD) with 1.57 and 1.53 beta value respectively.