Declining Market Movement During Correction Phase: Weekly Summary with Technical Analysis, Sector Breakdown, Major Highlights, and More

Fri, Mar 12, 2021 9:30 AM on Stock Market, Weekly Analysis,

-ShareSansar

78.97 points volatility was witnessed this week, with the market reaching the highest 2525.30 and the lowest 2446.33. NEPSE index lost 48.20 points (1.96%) in this trading week. Last Week market closed at 2506.68 points and this week closed at 2458.48 points on Thursday.

Candlestick pattern:

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 both 5 days EMA and 20 days EMA. Values below moving average signals for bearishness.

Relative Strength Index:

Relative Strength Index is a momentum oscillator that measures between zero and 100. Currently, the Relative Strength Index is at 47.27 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 bearish signal. The histogram is also in the negative zone. Overall MACD is indicating 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

23.6% - 2486.55

38.2% - 2368.76

50% - 2273.56

61.8% -2178.36

Turnover

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

Pivot Point- 2476 point

1^st Resistance- 2506 point 1^st Support- 2427 point

2^nd Resistance- 2555 point 2^nd Support- 2397 point

3^rd Resistance- 2594 point 3^rd Support- 2357 point

Conclusion: All major indicators are supporting a downtrend.

Weekly Market Summary of NEPSE:

More than 3.20 crore unit shares worth Rs 13.85 Arba has been traded through 1.53 lakh transactions this week. The current market capitalization of NEPSE stands at Rs. 3,387,335.62 Million.

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

The NEPSE index decreased by 1.92% this week. The top gainer sector of this week is the Hotel and Tourism with a rise of 7.61%.

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

Suryodaya Laghubitta Bittiya Sanstha Limited (SLBS) has the highest monthly Beta value of 2.20 followed by Kisan Laghubitta Bittiya Sanstha Limited (KLBSL) and Nepal Infrastructure Bank Limited (NIFRA) with 2.16 and 2.07 beta value respectively.

Top Ten Gainers of the week:

Chandragiri Hills Limited (CGH) is the top gainer of this week. CGH closed at Rs. 804 with Rs. 199 (32.89%) increment.

All the analysis is done with the SS Pro Software. To know more about the software, click on the link below

SSpro

Top Ten Losers of the week:

Shikhar Insurance Company Limited's (SICL) price has decreased by 28.31% and its LTP stands at Rs 1970.

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

Shikhar Insurance Company Limited (SICL) is the top traded company of the week. A total of Rs. 92.69 crores worth of SICL shares were traded this week.