Part 1: Rundown and Technical Analysis

The market operated for the 6 trading days this week. The market is open from Sunday to Friday and closed on Saturdays every week.

The NEPSE index closed at 2,028.77 this week after a gain of 166.71 points (8.95%). The index had closed at 1,862.06 last week with a loss of 5.55% from the week before that.

This week, the index went as high as 2,053.39 and as low as 1,863.47, hence witnessing volatility of 189.92, points. The index had seen volatility of 166.61 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 trend of the NEPSE index is still in a downtrend. Although, Index has seen an increment from 1848.28 points.

Candlestick Charting and Volume

This week's market movement has formed a bullish long candle on the weekly candlestick chart. A bullish candlestick indicates that the buyers are increasing than the sellers.

The highest intraday gain was 94.92 points on Sunday with a turnover of Rs 2.19 Arba. This week, average turnover has also increased with a total turnover of 10.65 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 51.10. Meanwhile, the RSI reading on the weekly chart is 35.71. No diversion has been seen in the RSI in relation to the index, thus invalidating any attempt toward the prediction of a reversal. Furthermore, the RSI readings in the daily and weekly charts also say very little other than the obvious fact that the sentiment has been pessimistic in the last few weeks.

On the other side of things, the MACD line is still negative, i.e. below zero in the daily timeframe, with the MACD reading at -46.66. The MACD line is above the signal line. This indicates the possibility of bullish movement in near future.

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 touched the 20 Days EMA with possibilities of formation of a Golden Crossover pattern. The Golden Cross is a technical pattern indicating the potential for an uptrend.

Price Action

This Week Index, continuously raised with a gain of 166.71 points. The index closes above its 20 days EMA and 5 days EMA indicates the possibility starting of a new upper trend, but still needs to wait for more confirmation.

1,907 to 1,850 zone may act as the nearest support whereas, 2273 to 2,200 zone will act as resistance.

Part 2: Insight into Important Data

More than 3.03 crores unit shares worth Rs. 10.6 Arba have been traded through 2.16 lakhs transactions this week. The current market capitalization of NEPSE stands at Rs. 2,892,516.42 million.

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

The NEPSE index declined by 8.95% this week. All the sectors closed in the green.

Stocks with the highest Monthly Beta

The top 3 companies with the highest beta are Union Hydropower Company Limited (UNHPL), Saptakoshi Development Bank Limited Promoter Share (SAPBLP) and River Falls Power Limited (RFPL) with 2.171, 2.133, and 2.133 respectively.

Top Ten Gainers of the week:

CYC Nepal Laghubitta Bittiya Sanstha Limited (CYCL) is the top gainer. CYCL closed at Rs. 1,160 with Rs. 505 (77.1%) increment.

Top Ten Losers of the week:

River Falls Power Limited's (RFPL) price has decreased by 4.98% and its LTP stands at Rs. 52.

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:

Himalayan Distillery Limited (HDL) is the top traded company of the week. A total of Rs. 37.71 crores worth of HDL shares were traded this week.

Top Buyers Brokers of the Week:

Imperial Securities Co. Pvt. Limited (Broker No- 45) was the top buyer broker this week and it has bought stocks worth Rs. 62.54 crores.

Top 10 Bought Companies:

Top Seller Brokers of the Week:

Imperial Securities Co Pvt. Limited (Broker No- 45) was the top seller broker for this week. The brokerage firm has sold stocks worth Rs. 55.38 crores.

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