NEPSE Concludes the Week On Indecisive Note; Weekly Summary with Chart Analysis, Sector Comparison, and Highlights

Fri, Jul 2, 2021 3:20 PM on Stock Market, Weekly Analysis,

-ShareSansar

This week Nepse Index made a 118.68 points volatility with the market reaching the highest 2900.89 and the lowest 2782.21. On Monday the index reached a high of 2900.89. The index closed at the same point as last week. Last week the market closed at 2843 points and this week also closed at 2843 points.

Candlestick pattern:

This week spinning top candle has formed on a weekly chart. The candlestick pattern represents indecision about the future direction. Neither the buyers nor the sellers could gain the upper hand. The buyers pushed the price up during the period, and the sellers pushed the price down during the period, but ultimately the closing price ended up very close to the open.

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 both 5 days EMA and 20 days EMA. Values below moving average signals for bearishness. Recently, 20-days Moving Average has crossed above its 5-days Moving Average from below forming a Dead crossover.

Relative Strength Index:

Relative Strength Index is a momentum oscillator that measures between zero and 100. Currently, the Relative Strength Index is at the 47.95 level. Traditionally the RSI is considered overbought when above 70 and oversold when below 30. A formation of bearish divergence is seen in RSI on the weekly chart as the index is making higher highs but RSI is making higher lows.

Moving Average Convergence and Divergence:

MACD line (blue) and the signal line (red line) are in the negative zone. MACD line is below the signal line. A histogram is also in the negative zone. Overall MACD is indicating downward momentum.

Turnover

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

Pivot Point- 2841

1^st Resistance- 2901 1^st Support- 2783

2^nd Resistance- 2959 2^nd Support- 2723

3^rd Resistance- 3018 3^rd Support- 2664

Conclusion: Spinning top candle formation on weekly charts indicates to be low sideways market next week. Major support of Nepse is at 2750.

Weekly Market Summary of NEPSE:

More than 10.33 crore unit shares worth Rs 34.16 Arba have been traded through 3.77 lakh transactions this week. The current market capitalization of NEPSE stands at Rs. 3,949,617.56 Million.

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

The NEPSE index closed at the same level of 2,843 points this week. Microfinance gained the most this week with an increment by 1.92%.

Stock with the highest monthly Beta value from the Development Bank and Finance sector

Best Finance Limited (BFC) has the highest monthly Beta value of 3.34 followed by Pokhara Finance Limited (PFL) and Green Development Bank Limited (GRDBL) with 3.11 and 3.08 beta values respectively.

Top Ten Gainers of the week:

Oriental Hotes Limited (OHL) is the top gainer of this week. OHL closed at Rs. 673 with Rs. 113 (20.18%) 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 Loser of the week:

Sagarmatha Insurance Company Limited (SIC) price has decreased by 13.18% and its LTP stands at Rs. 1383. Note: SIC 11% bonus dividend adjusted on 1st July, 2021.