Part 1: Rundown and Technical Analysis

The NEPSE index closed at 2,017.46 this week after a gain of 8 points (0.40%). The index closed at 2,009.46 last week with a gain of 0.85% from the week before.

This week, the index went as high as 2,065.86 and as low as 1994.75, hence witnessing volatility of 71.11 points. The index had seen a volatility of 102.83 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 spinning top candle on the weekly candlestick chart. A spinning top is a candlestick formation that signals indecision regarding the future trend direction. This candlestick formation signals indecisiveness amongst buyers and sellers, as neither of these sides has the upper hand, so this pattern is considered a neutral pattern. Last week's candle was a hammer candle.

The highest intraday loss was 27.26 points on Friday with a turnover of Rs 1.44 Arba. This week, highest turnover was on Tuesday with Rs 2.30 Arba, with a total turnover of Rs 9.66 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 49.89. Meanwhile, the RSI reading on the weekly chart is 36.11. 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 -1.19. The MACD line is above the signal line. This indicates the possibility of bullish movement in near future.

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 above the 20 Days EMA with the possibility of the formation of a Dead Crossover pattern. The Dead Cross is a technical pattern indicating the potential for a downtrend.

Support and Resistance

1,907 to 1,850 zone may act as the nearest support whereas, 2093 to 2,200 zone will act as resistance.

Part 2: Insight into Important Data

More than 2.32 crores unit shares worth Rs. 9.66 Arba have been traded through 1.67 lakhs transactions this week. The current market capitalization of NEPSE stands at Rs. 28,80,812.04 million.

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

The NEPSE index inclined by 0.40% this week. Eight out of thirteen sector indices closed green.

Stocks with the highest Monthly Beta

The top 3 companies with the highest beta are Nepal Finance Limited (NFS), Reliance Finance Limited (RLFL) and Shree Investment Finance Company Limited (SIFC) with 2.337, 2.241, and 2.123 respectively.

Top Ten Gainers of the week:

Emerging Nepal Limited (ENL) is the top gainer. ENL closed at Rs. 785 with Rs. 101 (14.77%) increment.

Top Ten Losers of the week:

Barun Hydropower Company Limited (BARUN) price has decreased by 35.23% and its LTP stands at Rs. 155.

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. 84.3 crores worth of SHIVM shares were traded this week.

Top Buyers Brokers of the Week:

Dynamic Money Managers Securities Pvt. Ltd. (Broker No- 44) was the top buyer broker this week and it has bought stocks worth Rs. 62.85 crores.

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. 67.71 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