NEPSE Wraps Up the Week With Highest Closing Ever; What's the Next Probable Target? (Technical Analysis, Sector Summary, Main Events, and More)

78.63 points volatility was witnessed this week, with the market reaching the highest 2376.13 and the lowest 2297.50. NEPSE index gained 88.10 points (3.85%) in this trading week. Last Week market closed at 2286.54 points and this week closed at 2374.64 points on Thursday.

Pattern Analysis:

The bullish flag pattern is formed. The base of the flag is 1635 and the top of the flag is 2090. The height of the flag is 455. The target will be 2550.  

Candlestick pattern:

Two green candles and three red candles were formed this week. Candles having tails were formed in the last 3 trading days.

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 above both 5 days EMA and 20 days EMA. Values above moving average signals for bullishness. The golden cross signal was generated by moving average on the 18th of October,2020.

Relative Strength Index:

Relative Strength Index is a momentum oscillator that measures between zero and 100. Currently, the Relative Strength Index is at 80.89 level. Traditionally the RSI is considered overbought when above 70 and oversold when below 30. A bearish divergence is seen in RSI as the index is making higher highs but RSI is making lower highs.

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 bullish signal. A histogram is also in the positive zone. Overall MACD is indicating upward momentum.

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

100% - 1888

1.272% - 2108

1.618% - 2383

2.618% - 3179


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

Pivot Point- 2349 point

1st Resistance- 2400 point               1st Support- 2322 point

2nd Resistance- 2428 point               2nd Support- 2270 point

3rd Resistance- 2467 point               3rd Support- 2230 point

Conclusion:  All major indicators are supporting a bullish trend. Flag Pattern indicates  Nepse Index to reach 2550.

Listing of the Week:


Weekly Market Summary of NEPSE:

More than 8.09 crore unit shares of worth Rs 34.16 Arba has been traded through 2.83 lakh transactions this week. The current market capitalization of NEPSE stands at Rs. 3,189,957.35 Million.

Sector-wise breakdown of the turnover of this week:

The commercial bank's sector made 27.10% of the total turnover this week followed by the Non-Life Insurance sector with 14.32% of the total turnover.

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

The NEPSE index increased by 3.85% this week. The top gainer sector of this week is the Trading sector with a rise of 17.74%.

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

National Microfinance Laghubitta Bittiya Sanstha Limited (NMFBS) has the highest monthly Beta value of 2.16 followed by Prime Commercial Bank Limited (PCBL) and Gurans Laghubitta Bittiya Sanstha Limited (GLBSL) with 1.92 and 1.84 beta value respectively.

Top Ten Gainers of the week:  

Corporate Development Bank Limited (CORBL) is the top gainer of this week. Corporate Development Bank closed at Rs 547 with Rs 206 (60.41%) 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:

United Finance Limited (UFL) price has decreased by 6.29% and its LTP stands at Rs 328.

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 2.37 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 1.76 Arba.

Top Buyer Brokers Top 10 Bought Companies:

Top Seller Broker of the Week:

Naasa Securities Co.Ltd (Broker No- 58) is the top seller broker for this week. The brokerage firm has sold stocks worth Rs 2.11 Arba.

Top Seller Brokers Top 10 Sold Companies:

Top 10 Companies with the 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:

Dividend of CBBL, LBBL, and NICA Distributed; Did You Get Yours?

Mahila Sahayatra Laghubitta (MSMBS) Proposes 10.53% Dividend for FY 2076/77; How much in Bonus Shares and Cash?

"8.5%, 7 years, Nepal Investment Bank Bond 2084" to Open for Application from Magh 16

Where Is the Collection Center in Kathmandu for Singati Hydro Energy Limited's IPO?

Citizens Bank's Q2 report: net profit rises by 27.26% with annualized EPS of Rs 17.83, PE stands at 16.55 times with NPL of 2.42%

Leading Development Bank Muktinath Bikas Bank publish excellent Q2 report; Net profit rises to Rs 61.55 crore with EPS of Rs 25.59

Bajaj Auto becomes World’s Most Valuable Two-Wheeler Company; hits market cap. of 1.61 lakh crores in NSE

IPO Is Not the Only Investment Option; Introduction to Debenture for New Investors (With Upcoming Issues)

Peoples Hydropower Company Appoints Issue Manager for IPO; How Will It Use This Capital?

Nepal Infrastructure Bank appoints Global IME Capital as its share registrar; bank just concludes the biggest ever IPO in Nepalese history

Government to support tourism and hotel sectors: Finance Minister Bishnu Paudel

'I will pay attention to appropriate allocation of budget, increasing expenditure capacity'

Biggest IPO Ever Closes With Record Volume of Applicants; What's the Final Count?

T+2 Settlement System Will Be Implemented from Magh 11: This is How It Works

Prepare Yourself for Citizen Life Insurance's IPO; How is the Company's Performance?

Mahalaxmi Bikas Bank (MLBL) to Convert Promoter Shares; What Will Be the New Shareholding Ratio?

Nepal Life Insurance (NLIC) Calls AGM and Proposes Stock-Split: What Does This Mean?

13.5 Lakh Applicants Apply for NIFRA's IPO till This Morning; Application Window Still Open till Today Afternoon

You Didn't Know Quants Make So Much Money in the Stock Market! Story of Two Investing Wizards

After successful acquisition of City Express Finance, Nepal Investment Bank (NIB) to commence joint transaction from Magh 11

Got Your Cash Dividend from SBI and GMFIL? Here's how to get it

First Microfinance earns Rs 6.28 crore in Q2; Loans rises by 14.13% and EPS stands at Rs 14.34

New chairman of Manjushree Finance receives oath of designation and secrecy from NRB regulation department head; Ms. Indira Pandit Ghimire begins her tenure for next 4 years

Renown share analyst Rabindra Bhattarai launches his new book Share Mantra; tries to debunk range of misconceptions prevalent about investing in share market

Looking at the Data Till Now, How Many Units Will Each Applicant Get in the IPO of NIFRA?

Got Your Cash Dividend From MNBBL, ICFC, and CHCL? Here's how to Get It

How to Trade Like a Monk and Earn Like a Boss

Things to know for prospective investors about IPO (locals) of Singati Hydro Energy Limited (SHEL); IPO opens from today

Machhapuchchhre Capital and Kriti Capital begins joint operation; new merchant banker to function in name of Machhapuchchhre Kriti Capital