Turnover Declining, Index Falling; Technical Analysis with Sector Comparison and Major Highlights of the Week

Fri, Jun 25, 2021 2:21 PM on Stock Market, Weekly Analysis,

This week Nepse Index made a 153.23 point volatility with the market reaching the highest 2978.26 and the lowest 2825.03. On Tuesday the index made a low of 2825.03. The index lost 125.43 points (4.23%) in this trading week. Last week market closed at 2968.43 points and this week closed at 2843 points on Thursday.

Candlestick pattern:

This week-long bearish candle has formed on a weekly chart. Last week, a shooting star candle was formed. A shooting star indicates a potential price top and reversal. A shooting star pattern is valid until Nepse closes above 3063.06.

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 signals 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 47.59 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- 2991

1st Resistance- 2939                   1st Support- 2786

2nd Resistance- 3035                   2nd Support- 2729

3rd Resistance- 3111                    3rd Support- 2652

Conclusion: All major indicators are supporting a downtrend. Buying opportunity will be created only after the Index closing above the high of a shooting star. Major support of Nepse is at 2750.

Weekly Market Summary of NEPSE:

More than 10.22 crore unit shares worth Rs 49.12 Arba have been traded through 5.38 lakh transactions this week. The current market capitalization of NEPSE stands at Rs. 3,949,619.20 Million.

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

The NEPSE index declined by 4.23% this week. All of the sectors lost this week.

Stock with the highest monthly Beta value from the Development Bank and Finance sector

Gurkhas Finance Limited (GUFL) has the highest monthly Beta value of 1.41 followed by Nepal Insurance Company Limited (NICL) and Ngadi Power Company Limited (NGPL)  with 0.99 and 0.87 beta value respectively.

Top Ten Gainers of the week:  

Kumari Bank Limited Promoter Share (KBLPO) is the top gainer of this week. KBLPO closed at Rs. 150 with Rs. 34 (29.31%) 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:

Chhimek Laghubitta Bittiya Sanstha Limited Promoter Share (CBBLPO) price has decreased by 61.11% and its LTP stands at Rs. 949.

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

Nepal Reinsurance Company Limited (NRIC) is the top traded company of the week. A total of Rs. 4.53 Arba worth of NRIC 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 3.02 Arba.

Top Buyer Brokers Top 10 Bought Companies:

Top Seller Broker 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 2.38 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:


Jeevan Bikas Laghubitta offering IPO shares to general public from today

NEPSE Investing Guide for Beginners Part 2: All About Secondary Market, The "Real" Stock Market

Compared to Same Period of Previous Fiscal Year, Nepal's National Trade Deficit Increases 24.61%

Stocks in NEPSE Can Now Trade in Decimal Price, Fluctuation Range Reduced in Pre-Market Session

Things to know for prospective investors about upcoming IPO of Jeevan Bikas Laghubitta Bittiya Sanstha Limited

Melamchi Water Supply Project suffers damage worth Rs 1 billion due to disaster

Another IPO Update: IME Life Insurance Company Wishes to Issue IPO for 60 lakh shares; Application Submitted to Regulator

Resume Import of Gold and Increase Daily Trading Limit: Federation of Nepal Gold Silver Gem & Jewellery Associations

Another Prospective IPO: Adarsha Laghubitta to Discuss IPO Issuance for 30% of Paid-Up Capital in Upcoming AGM

Arun Valley Hydropower Auctioning Unclaimed Right Shares; Auction Can Add Over Rs. 17 Crores as Non-Operating Profit to Company's Books

Manakamana Smart Laghubitta issuing 3.89 lakh units IPO share to general public from Ashad 17

Finance Minister Bishnu Poudel urges hoteliers to benefit from subsidy

NRB Issuing Development Bond 2084 'Cha' (विकास ऋणपत्र २०८४ च) Via Bidding Process

Asian Life Insurance (ALICL) Now Effectively Owns Wealth Management and Merchant Banking With 51% Stake in the Company

Nepal Reinsurance Company (NRIC) Proposes 20% Dividend as Its First Dividend Ever; How Much in Bonus Shares and Cash?

SEBON's Red Flag on 51 Companies: Estimating 30-Day Downside Risk Using Monte-Carlo Simulation VAR

Flood in Melamchi area damages huge property

NEPSE Investing Guide for Beginners Part 1: All About Primary Market and IPO

National Life Insurance Company disburses claim amount of over 56 lakhs within 6 days of claim submission; nominee of COVID victim receives insurance amount

As hydel projects suffer from flooding, IPPAN seeks refinancing from NRB

Nepal urges development partners to help address investment gaps