Weekly Summary: Ascending Trend in Market Participation as NEPSE Explores New Territory (Technical Analysis, Sector Comparison, and Highlights)

Fri, Apr 16, 2021 9:12 PM on Stock Market, Weekly Analysis, Featured,

-ShareSansar

NEPSE index closed at its highest point ever. 83.11 points volatility was witnessed this week, with the market reaching the highest 2755 and the lowest 2671.89. NEPSE index gained 61.11 points (2.29%) in this trading week. Last Week market closed at 2674.35 points and this week closed at 2735.46 points on Thursday.

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 the moving average on 21th of March 2021 is still Valid.

Relative Strength Index:

Relative Strength Index is a momentum oscillator that measures between zero and 100. Currently, the Relative Strength Index is at the 73.73 level. Traditionally the RSI is considered overbought when above 70 and oversold when below 30.

Moving Average Convergence and Divergence:

MACD line (blue) and the signal line (red line) are in the positive zone. The MACD line has crossed the Signal line above 0, this indicates a bullish signal. The 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

61.8% -2560

100% - 2676

161.8% - 2865

Turnover

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

Pivot Point- 2720

1^st Resistance- 2769 1^st Support- 2685

2^nd Resistance- 2804 2^nd Support- 2636

3^rd Resistance- 2846 3^rd Support- 2594

Conclusion: All major indicators are supporting the uptrend. The past resistance level of 2670 will work as major support for now.

Weekly Market Summary of NEPSE:

More than 4.75 crore unit shares worth Rs 23.39 Arba has been traded through 2.52 lakh transactions this week. The current market capitalization of NEPSE stands at Rs. 3,787,509.07 Million.

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

The NEPSE index increased by 2.28% this week. The top gainer sector of this week is the Development Bank sector with a rise of 8.16%.

Stock with the highest monthly Beta value from the Microfinance and Non-life insurance

Suryodaya Laghubitta Bittiya Sanstha Limited (SLBS) has the highest monthly Beta value of 2.71 followed by Prudential Insurance Company Limited (PICL) and General Insurance Company Nepal Limited (GIC) with 2.70 and 2.25 beta value respectively.

Top Ten Gainers of the week:

NIC Asia Laghubitta Bittiya Sanstha Limited (NICLBSL) is the top gainer of this week. NICLBSL closed at Rs. 1868 with Rs. 463 (32.95%) 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:

National Hydro Power Company Limited (NHPC) price has decreased by 5.81% and its LTP stands at Rs. 162.

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

Nepal Infrastructure Bank Limited (NIFRA) is the top traded company of the week. A total of Rs. 93.09 crores worth of NIFRA shares were traded this week.