Nepse Gained Minimal Points This Week (A Quick Summary Of Major Indicators)

Part 1: Rundown and Technical Analysis

The market operated for the entire 5 trading days this week. The market is closed on Fridays and Saturdays every week.

The NEPSE index closed at 2,613.67 this week after a loss of 17.58 points (-0.67%). The index had closed at 2,631.25 last week with a gain of 2.51% from the week before that.

This week, the index went as high as 2,658.06 and as low as 2,601.36, hence witnessing volatility of 56.7 points. In the previous week, the index had seen volatility of 107.3 points.

Analysis of Trend

The NEPSE index is up only around 1.62% compared to the same date last year. It is down around 18.53% from the all-time high of 3,198.60 created around seven months ago and up around 4.5% from the most-recent pivot low.

Candlestick Charting and Volume

On the weekly candlestick chart, this week's market movement has formed a small red candle whose upper shadow is longer than the lower shadow. Last week's candle was an average size green candle with a long upper wick.

The highest intraday loss was 20.34 points on Wednesday while the highest intraday gain was 18.07 points on Monday.

Volume was the highest on Thursday when the index lost 16.69 points.

Support/ Resistance, Price Action

First and foremost, there is no rigid rule to deduce support and resistance levels from a stock/ index chart. Technical analysis is more an art rather than hard science since it is an attempt to deduce market psychology after all. As is the case with human behavior, markets are largely unpredictable, subject to whims and instance changes in sentiment. The best a chart reader can do is deduce investing strategies using what has worked historically, and what gives a competitive edge even in securities other than those present in the sample data.

The resistance level is simply the price above which the index has had trouble moving up. Thus, the previous high (or a series of highs if they are on the same level) can be used as resistance. Meanwhile, if the stock or index chart has gone below the previous low, it can also be inferred as a resistance level, since the previous support level acts as resistance if the price/ index has broken below it.

On the other hand, the support level is simply the price below which the index has had trouble moving down. Thus, the previous low (or a series of low if they are on the same level) can be used as support. Meanwhile, if the stock or index chart has gone up the previous high, it can also be inferred as a support level, since the previous resistance level acts as support if the price/ index has broken above it.

The 2,682.57 index zone will act as the immediate resistance zone since the index couldn't surpass that level last time. Studying the index movement, it is apparent that the next resistance may be at the 2,750 level.

The index may find support at 2,601 or 2,570.

Momentum Indicators

The relative strength index (RSI) is a momentum indicator used in technical analysis that measures the magnitude of recent price changes to evaluate overbought or oversold conditions in the price of a stock or index. Traditional interpretation and usage of the RSI are that values of 70 or above indicate that a security is becoming overbought or overvalued and may be primed for a trend reversal or corrective pullback in price. An RSI reading of 30 or below indicates an oversold or undervalued condition.

The RSI reading on the daily timeframe is 43.62, a general decline throughout the week. Meanwhile, the RSI reading on the weekly chart is 46.39.

On the other side of things, the MACD line is still negative, i.e. below zero in the daily timeframe, with the MACD reading at -26.55. Last week, for the first time in about 2 months, the MACD line had crossed over the signal line, indicating a bullish sentiment in the timeframe. However, the crossover would have been more reliable if the MACD line was on the positive zone. The index indeed did not demonstrate a very optimistic sentiment this week, even though the crossover is intact.

Part 2: Insight into Important Data

More than 2.40 crores unit shares worth Rs 12.68 Arba have been traded through 1.84 lakh transactions this week. The current market capitalization of NEPSE stands at Rs. 3,705,598.80 million.

NEPSE index and Sub-indices performance: (Increment based on previous week's close)

The NEPSE index declined by 0.67% this week. Life Insurance increased the most this week with a 3.38% increment.

Stocks with highest monthly Beta (Hydropower, Development Bank, Finance, Life Insurance)

Miteri Development Bank Limited (MDB) has the highest monthly Beta value of 1.95 followed by Pokhara Finance Limited (PFL) and  Corporate Development Bank Limited (CORBL) with 1.89 and 1.88 beta values respectively.

Top Ten Gainers of the week:  

Emerging Nepal Limited (ENL) is the top gainer of this week. ENL closed at Rs. 760.7 with Rs. 288.1 (60.96%) 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:

Nepal Life Insurance Company Limited's (NLIC) price has decreased by 9.59% and its LTP stands at Rs. 1122.

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

Nepal Doorsanchar Company Limited (NTC) is the top traded company of the week. A total of Rs. 71.60 crores worth of NTC 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 75.46 crores.

Top 10 Bought Companies:

Top Seller Brokers of the Week:

Naasa Securities Co. Ltd (Broker No- 58) was the top seller broker for this week. The brokerage firm has sold stocks worth Rs 94.18 crores.

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

SSpro