Weekly Summary: NEPSE Index Rests At Support With Decline in Volume; Reversal or Continuation?

Fri, Jul 9, 2021 3:33 PM on Weekly Analysis, Stock Market,

This week Nepse Index made a 64.2 points volatility with the market reaching the highest 2857.63 and the lowest 2793.43. On Sunday the index reached a high of 2857.63. The index lost a minimal 17.9 points (0.63%) in this trading week. Last week market closed at 2843 points and this week closed at 2825.10 points on Thursday.

Candlestick pattern:

A type of spinning top candle has formed on a weekly chart. This week also small body having candle has been formed.  The candlestick pattern represents indecisiveness about the future direction and also represents decreasing volatility.

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 signal 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 46.64 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.


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

Pivot Point- 2825

1st Resistance- 2857                    1st Support- 2793

2nd Resistance- 2889                   2nd Support- 2761

3rd Resistance- 2953                    3rd Support- 2697

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

Weekly Market Summary of NEPSE:

More than 5.58 crore unit shares worth Rs 23.26 Arba have been traded through 2.57 lakh transactions this week. The current market capitalization of NEPSE stands at Rs. 3,929,861.44 Million.

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

The NEPSE index closed at 2825 points this week losing 0.63% of the value compared to last week. Manufacturing and Processing gained the most this week with an increment of 2.70%.

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 3.73 followed by Joshi Hydropower Development Company Limited (JOSHI) and Guheswori Merchant Banking & Finance Limited (GMFIL) with 3.72 and 3.46 beta values respectively.

Top Ten Gainers of the week:  

Civil Laghubitta Bittiya Sanstha Limited (CLBSL) is the top gainer of this week. CLBSL closed at Rs. 1680 with Rs. 165 (10.89%) increment.

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


Top Ten Loser of the week:

Nepal Insurance Company Limited's (NICL) price has decreased by 12.12% and its LTP stands at Rs. 1022.

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

Himalayan Distillery Company Limited (HDL) is the top traded company of the week. A total of Rs. 1.31 Arba worth of HDL shares were traded this week.

Top Buyers Brokers of the Week:

Naasa Securities Co.Ltd (Broker No- 58) was the top buyer broker of this week and it has bought stocks worth Rs 1.69 Arba.

Top Buyer Brokers Top 10 Bought Companies:

Top Seller Broker of the Week:

Vision Securities Pvt. Limited (Broker No- 34) was the top seller broker for this week. The brokerage firm has sold stocks worth Rs 1.95 Arba.

Top Seller Brokers Top 10 Sold Companies:

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


Major Highlights of the week:

Rachana Gaire: When They Say Long-Term Investment, How Long Do They Mean?

Shares Listed: Bonus Shares of CLBSL and EIC

"Let's shove a really bad company down the throat of ignorant investors in a bull market"

‘Water level will increase if global warming continues to rise’

IPO of Union Life Insurance Opening Today; Everything You Need To Know About the Company

Public Issue of "8.50% Machhapuchchhre Debenture 2087" Open from 31st Ashar

IPO allotment of Jeevan Bikas Laghubitta concludes; lucky 1,84,801 investors get 10 units each and remaining 18,48,015 applicants return empty hands

Sahara Bikas Bank Limited (SHBL) Proposes 5.32% Dividend; How Much in Bonus Shares?

Bankers in Kawaswoti go on strike against unilateral decision to enforce Social Security Fund

SEBON Employee Union concludes its 6th annual convention; unanimously elects new board under leadership of Mr. Raju Bahadur GC

IPO Allotment Tomorrow: Jeevan Bikas Laghubitta Allotting IPO Shares; Will the Allotment Be Streamed Live?

IPO Closed: Public Issue of Manakamana Smart Laghubitta Oversubscribed More Than 73 Times 

Upper Tamakoshi Hydropower: A ‘game changer’ project for country

Upper Tamakoshi Hydropower Project comes into operations; PM inaugurates the pride project

CEO of Century Commercial Bank (CCBL) Resigns Before Completion of Tenure

Nabil Bank to Commence Joint Operation from Ashar 27 After Acquisiton of United Finance

FNCCI offers suggestions to Nepal Rastra Bank to include in monetary policy

13,03,320.20 Bonus Shares of Shangrila Development Bank (SADBL) Now Listed in NEPSE

Public Issue of "8.5% Laxmi Bank Debenture 2088" to Open on 28 Ashar

Mutual Funds Saw Satisfactory Rise in NAV in Jestha; A Bird's-Eye View into Their Investment Style and Preference for the Month

Public Issue of "9% Jyoti Bikas Bank Bond 2087" Opening Today

Employee Association of NIC ASIA Bank organizes nationwide protest events against provisions of SSF; vows to continue their ongoing protest until their demands are met