Weekly Summary: Bearish Tests, Sector-wise Analysis, Technical Indicators, Major Highlights, and More

Fri, Dec 18, 2020 3:30 PM on Stock Market, Weekly Analysis, Featured,

NEPSE Index gained 68.49 points (3.49%) in this trading week. Last week, the market closed at 1964.02 points and this week, it closed at 2032.51 points on Thursday. 129.76 points volatility was witnessed this week, with the market reaching the highest 2097.20 and the lowest 1967.44.

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 but still need to wait for more confirmation.

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 the next trading week according to Pivot Point.

Pivot Point- 2032 point

1st Resistance- 2097 point                1st Support- 1967 point

2nd Resistance- 2162 point               2nd Support- 1902 point

3rd Resistance- 2227 point              3rd Support- 1837 point

Conclusion: We can aspect the market to have less volatility than past weeks. High possibility of formation of double top chart pattern at 2090 with its, end at 1928.

Listing of the Week:

Weekly Market Summary of NEPSE:

More than 5.63 crore unit shares worth Rs 30.08 Arba has been traded through 2.59 lakh transactions this week. The current market capitalization of NEPSE stands at Rs. 2,732,268.13 Million.

Sector-wise breakdown of the turnover of this week:

The commercial bank's sector made 27.80% of the total turnover this week followed by the Life Insurance sector with 18.09% 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 3.49% this week. The top loser sector of this week is the Hydropower sector with a fall of 6.79% followed by Hotels sector with a fall of 0.75%. The top gainer sector of this week is the Microfinance sector with a rise of 11.19%.

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

National Life Insurance Company Limited (NLICL) has the highest monthly Beta value of 1.70 followed by Neco Insurance Company Limited (NIL) and Nepal Life Insurance Company Limited (NLIC) with 1.65 and 1.57 beta value respectively.

Top Ten Gainers of the week:  

Mahuli Laghubitta Bittiya Sanstha Limited (MSLB) is the top gainer of this week. Mahuli Laghubitta closed at Rs 1439 with Rs 544 (60.78%) 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:

Chilime Hydropower Company Limited's (CHCL) price has decreased by 15.11% and its LTP stands at Rs 528.

*Bonus and Cash dividend-adjusted for CHCL this week.

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

Nepal Life Insurance Company Limited (NLIC) is the top traded company of the week. A total of Rs 2.81 Arba worth of NLIC 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 2.60 Arba.

Top Buyer Brokers Top 10 Bought Companies:

Top Seller Broker of the Week:

Dynamic Money Managers Securities Pvt.Ltd (Broker No- 44) is the top seller broker for this week. The brokerage firm has sold stocks worth Rs 1.54 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:

Collaboration between ShareSansar and Mid Valley International College: Capital Market to be taught within their curriculum

Explained: Major Highlights of NRB's New Policy Revision for Banks and Financial Institutions

Rastriya Banijaya Bank inks agreement of subsidized loan facility with National Youth Council; to provide loan to skilled youths trained by council from all 7 provinces

IPO to locals of Chandragiri Hills Limited concluded successfully; Issue Oversubscribed over 5.4 times

Auction of four companies closing today; Make sure you don't miss out!

Bottlers Nepal Receives Award for its Energy Saving Initiatives; receives 5.2 million in grant from German government

98% of total construction completed of Univeral Power Comapny Limited's project; How did UPCL earn profit till this quarter?

Precious Metals saw intense price fluctuation during the pandemic; Gold Price rises Rs. 800 per tola in a single day

Nepal Rastra Bank approves Prabhu Bank's Proposal to Distribute 10.5263% Dividend for FY 2076/77

Banks Update Interest Rates; Base Rates Falling; How will this Affect the Stock Market?

Salt Trading Corporation virtually convenes its 53rd AGM; endorses proposal of 35% dividend to its shareholders

Shares of Mountain Energy Nepal Limited (MEN) listed in NEPSE; Open Price set as Rs (114.81 to 344.43) for the First Transactions

Do the locals believe in the profitability of Chandragiri Hills Limited? This is what the IPO data tells us

Hotel Industry still struggling to survive the pandemic; Taragaon Hotel Limited publishes Q1 report along with Q4 of FY 2076/2077 report with huge fall in revenue

IPO Opening Day: Prabhu Life Insurance is issuing 60 lakhs units shares to general public from today

Things to know for prospective investors about IPO of Prabhu Life Insurance Limited; high chance of lottery for 10 units