Part 1: Rundown and Technical Analysis

The NEPSE index closed at 2,140.52 this week after a gain of 123.06 points (6.10%). The index closed at 2,017.46 last week with a gain of 0.40% from the week before.

This week, the index went as high as 2,156.10 and as low as 2027.80, hence witnessing volatility of 128.30 points. The index had seen a volatility of 71.11 points in the previous week.

Analysis of Trend

Trend analysis is a technical analysis method that helps to predict future movement based on the current ongoing trend data. Looking at the daily charts, the short-term trend of the NEPSE index is up.

Candlestick Charting and Volume

This week's market movement has formed a bullish marubozu candle on the weekly candlestick chart. In bullish marubozu, the open price is equal to the low price and the close price is the same as the high price. Last week's candle was a spinning top candle.

The highest intraday gain was 61.05 points on Sunday with a turnover of Rs 2.73 Arba. This week, highest turnover was on Thursday with 4.98 Arba, with a total turnover of 20.87 Arba.

Momentum Indicators

The relative strength index (RSI) is a momentum indicator used in technical analysis that measures the magnitude of recent price changes to evaluate overbought or oversold conditions in the price of a stock or index. Traditional interpretation and usage of the RSI are that values of 70 or above indicate that a security is becoming overbought or overvalued and may be primed for a trend reversal or corrective pullback in price. An RSI reading of 30 or below indicates an oversold or undervalued condition.

The RSI reading on the daily timeframe is 62.03. Meanwhile, the RSI reading on the weekly chart is 43.33.

On the other side of things, the MACD line is in the positive zone, i.e. above zero in the daily timeframe, with the MACD reading at 14.74. The MACD line is above the signal line. This indicates a bullish sentiment.

Moving Averages

NEPSE index is above both 5 days Exponential Moving Average (EMA) and 20 days EMA. The index above these moving averages signals bullishness. The 5 days EMA is above the 20 Days EMA with the Golden Crossover pattern formation. The Golden Cross is a technical pattern indicating the potential for an uptrend.

1,907 to 2,087 zone may act as the nearest support whereas, 2,200 zone will act as resistance.

Part 2: Insight into Important Data

More than 4.96 crores unit shares worth Rs. 20.87 Arba have been traded through 3.25 lakhs transactions this week. The current market capitalization of NEPSE stands at Rs. 3,056,535.95 million.

NEPSE index and Sub-indices performance: (Incline is based on the previous week's close)

The NEPSE index inclined by 6.10% this week. All sector indices closed green.

Stocks with the highest Monthly Beta

The top 3 companies with the highest beta are Shree Investment Finance Company Limited (SIFC) Reliance Finance Limited (RLFL) and Pokhara Finance Company Limited (SIFC) with 2.475, 2.463, and 2.435 respectively.

Top Ten Gainers of the week:

Multipurpose Finance Company Limited (MPFL) is the top gainer. MPFL closed at Rs. 353 with Rs. 102 (40.64%) increment.

Top Ten Losers of the week:

Kumari Dhanbriddhi Yojana (KDBY) price has decreased by 10.4% and its LTP stands at Rs. 8.96.

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

SSpro

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

Shivam Cements Limited (SHIVM) is the top traded company of the week. A total of Rs. 1.21 Arba worth of SHIVM shares were traded this week.

Top Buyers Brokers of the Week:

Naasa Securities Company Limited (Broker No- 58) was the top buyer broker this week and it has bought stocks worth Rs. 1.36 Arba.

Top 10 Bought Companies:

Top Seller Brokers of the Week:

Naasa Securities Company Limited (Broker No- 58) was the top seller broker for this week. The brokerage firm has sold stocks worth Rs. 1.21 Arba.

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.

SSpro