Weekly Summary: Technical Analysis, Sectorwise Breakdown, Major Highlights, and More

Fri, Feb 5, 2021 12:12 PM on Stock Market, Weekly Analysis, Featured,

-ShareSansar

153.39 points volatility was witnessed this week, with the market reaching the highest 2519.85 and the lowest 2366.46. NEPSE index gained 49.97 points (2.06%) in this trading week. Last Week market closed at 2425.29 points and this week closed at 2475.26 points on Thursday.

Pattern Analysis:

The bullish flag pattern is formed. The base of the flag is formed in 1635 and the top of the flag is 2090. The overall 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 shadows were formed on the last two 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, the 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 73.32 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. A histogram is also in the positive zone. The signal line has crossed the MACD line and the Signal line rises above the MACD line, this indicates a possibility of the start of a bearish signal, which suggests that the Nepse index is likely to experience downward 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

Turnover

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

Pivot Point- 2453 point

1^st Resistance- 2540 point 1^st Support- 2387 point

2^nd Resistance- 2660 point 2^nd Support- 2300 point

3^rd Resistance- 2682 point 3^rd Support- 2223 point

Conclusion: All major indicators are supporting the market to experience down momentum.

Listing of the week:

Weekly Market Summary of NEPSE:

More than 8.56 crore unit shares worth Rs 41.68 Arba has been traded through 4.00 lakh transactions this week. The current market capitalization of NEPSE stands at Rs. 3,334,063.34 Million.

Sector-wise breakdown of the turnover of this week:

The commercial bank's sector made 25.21% of the total turnover this week followed by the Non-Life Insurance sector with 18.50% 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 2.06% this week. The top gainer sector of this week is the Others sector with a rise of 4.80%.

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

Mahila Sahayatra Laghubitta Bittiya Sanstha Limited (MSMBS) has the highest monthly Beta value of 3.67 followed by Multipurpose Finance Company Limited ( MPFL ) and Pokhara Finance Limited ( PFL ) with 3.31 and 2.72 beta value respectively.

Top Ten Gainers of the week:

Janautthan Samudayic Laghubitta Bittiya Sanstha Limited ( JSLBB ) is the top gainer of this week. Corporate Janautthan Samudayic closed at Rs 3745 with Rs 1000 (36.43%) increment.