Will NEPSE Go on a Correction? Will the Trend Continue? Detailed Weekly Summary and Highlights (with Technical Analysis)

Fri, Jan 29, 2021 12:57 PM on Stock Market, Weekly Analysis, Exclusive,

65.54 points volatility was witnessed this week, with the market reaching the highest 2462.28 and the lowest 2396.74. NEPSE index gained 50.65 points (2.13%) in this trading week. Last Week market closed at 2374.64 points and this week closed at 2425.29 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. A long bearish candle was formed on the last trading day.

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 77.16 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- 2427 point

1st Resistance- 2459 point               1st Support- 2393 point

2nd Resistance- 2493 point               2nd Support- 2361 point

3rd Resistance- 2526 point               3rd Support- 2328 point

Conclusion:  All major indicators are supporting market momentum to be less volatile in upcoming days.

Listing of the week:

Weekly Market Summary of NEPSE:

More than 9.57 crore unit shares of worth Rs 44.46 Arba has been traded through 3.57 lakh transactions this week. The current market capitalization of NEPSE stands at Rs. 3,266,758.24 Million.

Sector-wise breakdown of the turnover of this week:

The commercial bank's sector made 27.09% of the total turnover this week followed by the Life Insurance sector with 17.12% 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 2.13% this week. The top gainer sector of this week is the Non-Life Insurance sector with a rise of 9.40%.

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

Prime Commercial Bank Limited (PCBL) has the highest monthly Beta value of 2.40 followed by Kumari Bank Limited (KBL) and Everest Bank Limited (EBL) with 2.25 and 2.17 beta value respectively.

Top Ten Gainers of the week:  

Prabhu Life Insurance Company Limited (PLI) is the top gainer of this week. Prabhu Life closed at Rs 695 with Rs 262 (60.51%) 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:

Progressive Finance Limited (PROFL) is the top looser of this week. NLIC, GBBL and CFCL price fell due to their 31%, 13.5% and 7% bonus share adjustment. 

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 4.23 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 2.72 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 2.72 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:

Sunrise First Mutual Fund (SFMF) and Global IME Samunnat Scheme-1 (GIMES1) Publish NAV Report; How did they perform in Poush?

Rise in NAV and Net Profit of Citizens Mutual Fund-1 (CMF1) and Citizens Mutual Fund-2 (CMF2) in Poush

All IPO Applicants of NIFRA Will Get 50 Units Each! And Some Might Even Get 60 Units! What Are the Chances of That?

NMB Bank's profit rises by 47.69% in Q2; has Rs 1.50 arba distributable profit; NPL rises to 2.38%

Despite decline in business volume Mahalaxmi Bikas Bank reported increment in major profitabilty indicators in Q2; Look at the major highlights

Excellent rise in net interest income leads to 37.32% rise in net profit of Global IME Bank; EPS and PE stands at Rs 21.40 and 15.84 times

NIC Asia Bank reports huge growth in business volume in Q2; How did the bank perform in terms of profitability?

Nabil Bank reported slight decline in net profit in Second Quarter; Look at the major highlights of Q2

Upcoming IPO: Mahila Laghubitta to Issue 4 Lakh Shares

IPO Collection Update of "Sanima Large Cap Fund"; IPO Closing Tomorrow

Profit Jumps, NAV Rises in Poush for All Three Mutual Funds of NIBL Ace Capital

Impressive Rise in NAV and Net Profit of Laxmi Equity Fund (LEMF) and Laxmi Unnati Kosh (LUK) in Poush

Do This to Claim Your Cash Dividend from Surya Life Insurance (SLICL)

NMB laghubitta reports increment in major indicators in Q2; Look at the major profitability indicators

Despite increment in major profitability indicators of Nepal Bank in Q2, bank reported slight decline in net profit

Mega Bank enters into remittance agreement with Lulu remit of Kuwait; remittance service to become more accessible through strong 32K remit agents and branches of bank

Prabhu Bank reports an outstanding performance in Q2 with 39.87% growth in net profit; EPS stands at Rs 26.77 and NPL decline to 2.06%

Sunrise Bank Q2 profit remains stagnant with meager 0.53% growth; EPS stands at Rs 20.01 with PE of 13.49 times

IPO Allotment of NIFRA May Be Delayed; Issue Manager Awaiting Vital Data

Rise in NAV and Net Profit in all three of NIC Asia Capital's Mutual Funds

Heads Up: Two More Companies Initiate IPO Issuance Procedure

Don't Forget: Your Last Chance to Grab 51% Dividend of Nepal Life Insurance (NLIC)

Right Shares Issue Open: Narayani Development Bank (NABBC) issuing 1: 1 Right Shares from Today

Nepal Bangladesh Bank's net profit reaches near Rs 1 billion in Q2; EPS and PE stands at Rs 22.16 and 12.73 times

How Many Have Applied for IPO of "Sanima Large Cap Fund" on the Third Day?

Last Day to Bid for Promoter Shares of Vijaya Laghubitta (VLBS)

Kumari Bank reports massive increment in profitability in Q2; Look at the major highlights reported by the bank

Is the IPO of "Sanima Large Cap Fund" Already Oversubscribed?

Mirmire Laghubitta reports massive increment in its business volume in Q2; NPL increased to 2.80%

Pathao Nepal signs agreement to provide Insurance to its Customers and Riders; Know which insurance company is tied up to this popular service

Greenlife Hydropower issuing 34.96 lakh units IPO share to general public from Magh 23

SEBON finally says go ahead to Nagarik Stock Dealer Company; Will equity market see more maturity and further progress now?