NEPSE Concludes the Week With 0.20% Gain and Turnover of Rs 13.19 Arba; Weekly Summary with Technical Analysis, Sector Comparison, Major Highlights, and More
Fri, Jan 27, 2023 2:45 PM on Stock Market, Weekly Analysis,
Part 1: Rundown and Technical Analysis
This week, NEPSE traded for 4 days only as Sunday was a public holiday. The index closed at 2,183.21 this week after a gain of 4.40 points (0.20%). The index closed at 2,178.81 last week with a gain of 1.37% from the week before that.
This week, the index went as high as 2,202.26 and as low as 2,140.18 hence witnessing volatility of 62.08 points. The index had seen volatility of 77.78 points in the previous week.
Analysis of Trend and Volume
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 is up but the NEPSE index’s mid-term trends are still down.
The highest intraday loss was 13.71 points on Monday with a turnover of Rs 3.86 Arba, however, the total turnover stood at Rs 13.19 Arba this week.
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 69.22. Meanwhile, the RSI reading on the weekly chart is 61.47.
On the other side of things, the MACD line and Signal line both are in the Positive zone, i.e. above zero in the daily timeframe, but the MACD line and Signal line is going to make a crossover pattern with the MACD reading at 62.27. This indicates an early start of bearish 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 a golden crossover pattern forming. The golden cross is a technical pattern indicating the potential for an uptrend. The golden cross pattern is formed on 27th December.
2,080 to 2,000 zone may act as the nearest support whereas, the 2280 zone will act as resistance.
Part 2: Insight into Important Data
The highest intraday gain was 10.37 points on Wednesday with a turnover of Rs 3.466 Arba, whereas the total turnover of the week stood at Rs. 13.19 Arba. More than 3.63 crore unit shares have been traded through 219,940 transactions this week. The current market capitalization of NEPSE stands at Rs. 3,150,486.55 million i.e. Rs 31.5 Kharba.
NEPSE index and Sub-indices performance: (Incline is based on the previous week's close)
The NEPSE index inclined by 0.20% this week. Nine sector indices closed red.
Stocks with the highest Monthly Beta
The top three companies with the highest beta are Kalika Power Company Limited (KPCL), Himalayan Hydropower Limited (HHL), and Siddhartha Insurance Limited (SIL) with 2.781, 2.474, and 2.473 respectively.
Top Ten Gainers of the week:
Adarsha Laghubitta Bittiya Sanstha Limited (ADLB) is the top gainer. ADLB closed at Rs. 1,197.90 with Rs. 349.7 (41.23%) increment.
Top Ten Losers of the week:
Saptakoshi Development Bank Limited's (SAPDBL) price has decreased by 7.14% and its LTP stands at Rs. 269.30.
All the analysis is done with the SS Pro Software. To know more about the software, click on the link below.
Top Stocks by Turnover, Volume, and Number of Transactions:
Kumari Bank Limited (KBL) is the top-traded company of the week. A total of Rs. 43.27 Crores worth of KBL shares were traded this week.
Top Buyers Brokers of the Week:
Naasa Securities Co.Ltd (Broker No- 58) was the top buyer broker this week and it bought stocks worth Rs. 1.299 Arba.
Top 10 Bought Companies:
Top Seller Brokers of the Week:
Naasa Securities Co. Ltd (Broker No- 58) was the top seller broker for this week. The brokerage firm has sold stocks worth Rs. 1.271 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.
