Part 1: Rundown and Technical Analysis

The NEPSE index closed at 1,882.60 this week after a loss of 34.68 points (1.81%). The index closed at 1,917.28 last week with a loss of 2.23% from the week before.

This week, the index went as high as 1,918.03 and as low as 1,868.77, hence witnessing volatility of 49.26 points. The index had seen a volatility of 56.62 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 trend is showing uptrend but mid-term trend of the NEPSE index is still down.

The highest intraday loss was 31.97 points on Sunday with a turnover of Rs 1.10 Arba, whereas the total turnover of the week stood Rs 5.16 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 40.33. Meanwhile, the RSI reading on the weekly chart is 39.22.

On the other side of things, the MACD line is in the Negative zone, i.e. below zero in the daily timeframe, moving downward to the negative zone with the MACD reading at -5.34. The MACD line is below 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.

1,830 to 1,800 zone may act as the nearest support whereas, 1980 zone will act as resistance.

Part 2: Insight into Important Data

More than 1.69 crore unit shares worth Rs. 5.166 Arba have been traded through 103,008 transactions this week. The current market capitalization of NEPSE stands at Rs. 2,721,112.21 million i.e. Rs 27.21 Kharba.

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

The NEPSE index declined by 1.81% this week. Only two sectors closed green.

Stocks with the highest Monthly Beta

The top three companies with the highest beta are NADEP Laghubitta Bittiya Sanstha Limited (NADEP), Swet-Ganga Hydropower & Construction Limited (SGHC), and Panchthar Power Company Limited (PPCL) with 2.942, 2.927, and 2.907 respectively.

Top Ten Gainers of the week:

CYC Nepal Laghubitta Bittiya Sanstha Limited (CYCL) is the top gainer. CYCL closed at Rs. 2,405 with Rs. 706.8 (41.62%) increment.

Top Ten Losers of the week:

Peoples Hydropower Company Limited's (PHCL) price has decreased by 19% and its LTP stands at Rs. 243. 

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 Transactions:

Nabil Bank Limited (NABIL) is the top-traded company of the week. A total of Rs. 45.03 crores worth of NABIL 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. 49.03 crores.

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. 46.03 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