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,

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


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

Pivot Point- 1976 point

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

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

3rd Resistance- 2250 point              3rd 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.

Top Ten Gainers of the week:  

Narayani Development Bank Limited (NABBC) is the top gainer of this week. Narayani Development closed at Rs 438 with Rs 143 (48.47%) 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:

Nepal Reinsurance Company Limited (NRIC) price has decreased by 10.72% and its LTP stands at Rs 1549.


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

Nepal Reinsurance Company Limited (NRIC) is the top traded company of the week. A total of Rs 3.45 Arba worth of NRIC shares were traded this week.

Top Buyers Brokers of the Week:

Imperial Securities Co.Pvt.Limited (Broker No- 45) was the top buyer broker of this week and it has bought stocks worth Rs 1.37 Arba.

Top Buyer Brokers Top 10 Bought Companies:


Top Seller Broker of the Week:

Naasa Securities (Broker No- 58) is the top seller broker for this week. The brokerage firm has sold stocks worth Rs 1.81 Arba.

Top Seller Brokers Top 10 Sold Companies:

Top 25 Companies with Highest Market Capitalizations:

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


Major Events, News of the Week:

Are you thinking to invest in Nabil Bank Limited ? Know in detail about its financial performance

Corona Insurance: 17,000 plus claims with complete documents

NEPSE frees the shares of Mahuli Laghubitta for trading: Extra shares added after a successful merger

Bottlers Nepal Terai Limited (BNT) and Bottlers Nepal Limited Balaju (BNL) call respective AGM: When's the book closure?

No Dividend for FY 2076/77: United Finance Limited (UFL)

Manakamana Temple and Cable Car service to operate from coming Sunday; cable car to operate in 50% capacity and to promote digital ticketing to reduce COVID transmission

Russia has expressed its interest to invest in energy sector of Nepal

Another IPO in Pipeline: Jyoti Life Insurance to issue IPO for 66 lakh unit shares

NIC ASIA Capital allots its first-ever open-ended mutual fund scheme to general investors; issue received an overwhelming response with more than 89.5K applications for 5.60 crore units

Stock Markets of the World Recovered Quickly from the Pandemic than You Would Expect: A Look at the Top Indices

NIC ASIA Bank virtually convenes its 23rd AGM; endorses proposal of 20% dividend to its shareholders

Muktinath Bikas Bank (MNBBL) proposes 15.51% Dividend for FY 2076/77: How much in Bonus Shares and Cash?

Miteri Development Bank (MDB) proposes 15.79% Dividend for FY 2076/77: How much in Bonus Shares and Cash?

Having confusion in using valuation ratios for financial institutions? Here's how you can connect the dots between ratios for investment decision