NEPSE Bounced Back 30.35 Points This Week (Weekly Summary Of NEPSE With Technical Analysis, Sector Comparison And Major Highlights)

Fri, Aug 19, 2022 12:29 PM on Stock Market, Weekly Analysis,

-ShareSansar

Part 1: Rundown and Technical Analysis

The NEPSE index closed at 2,068.27 this week after a gain of 30.35 points (1.49%). The index closed at 2,037.92 last week with a loss of 3.58% from the week before.

This week, the index went as high as 2,088.22 and as low as 2004.29, hence witnessing volatility of 83.93 points. The index had seen a volatility of 102.17 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 down.

Candlestick Charting and Volume

This week's market movement has formed a spinning top on the weekly candlestick chart. Spinning tops are a sign of indecision, the upper and lower shadows indicate there wasn’t a meaningful change between the open and the close.

The highest intraday gain was 55.85 points on Monday with a turnover of Rs 2.43 Arba. This week, the highest turnover was on Tuesday with 2.74 Arba, with a total turnover of 10.50 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 48.91. Meanwhile, the RSI reading on the weekly chart is 40.99.

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 -5.77. The MACD line has crossed the signal line. This indicates a bearish sentiment.

Moving Averages

NEPSE index is below both 5 days Exponential Moving Average (EMA) and 20 days EMA. The index below these moving averages signals bearishness. The 5 days EMA is below the 20 Days EMA with a Dead Crossover pattern forming. The Dead Cross is a technical pattern indicating the potential for a downtrend.

2,000 to 1,907 zone may act as the nearest support whereas, 2,200 zone will act as resistance.

Part 2: Insight into Important Data

More than 2.55 crores unit shares worth Rs. 10.50 Arba have been traded through 1.92 lakhs transactions this week. The current market capitalization of NEPSE stands at Rs. 2,963,658.39 million.

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

The NEPSE index inclined by 1.49% this week. Thirteen sector indices closed green.

Stocks with the highest Monthly Beta

The top 3 companies with the highest beta are Panchakanya Mai Hydropower Limited (PMHPL), Green Development Bank Limited (GRDBL) and Janaki Finance Company Limited (JFL) with 2.441, 2.421, and 2.343 respectively.