NEPSE Loses 5.4% in a Week Dominated by the Bears (Technical Analysis of the Index with Scrip Breakdown, Broker Comparison, and Highlights)

Fri, Sep 3, 2021 3:21 PM on Weekly Analysis, Stock Market,

-ShareSansar

NEPSE Index made 199.48 points volatility with the market reaching the highest 3115.74 and the lowest 2916.26. The index lost 167.16 points (5.40%) in this trading week. Last week the market closed at 3094.05 points and this week closed at 2926.89 points on Thursday.

Exponential Moving Average:

NEPSE index is below both 5 days EMA and 20 days EMA. The Index below the moving average signals for Bearishness. Recently, 5 days EMA has crossed its 20 Days EMA from above, forming a Dead crossover pattern. The Dead cross is a technical pattern indicating the potential for a downtrend.

Relative Strength Index:

Relative Strength Index is a momentum oscillator that measures between zero and 100. Currently, the Relative Strength Index is at the 31.96 level. Traditionally the RSI is considered overbought when above 70 and oversold when below 30.

Moving Average Convergence and Divergence:

MACD line (blue) and the signal line (red line) are in the Positive zone. The MACD line has crossed the signal line and the MACD line is below the signal line, this indicates a possibility of a trend reversal. A histogram is also in the negative zone. MACD is indicating the possibility of downward momentum.

Turnover

Fibonacci retracement:

A Fibonacci retracement refers to areas of support or resistance. The indicator is useful because it can be drawn between any two significant price points, such as a high and a low, and then the indicator will create the levels between those two points.

The Fibonacci retracement levels are

61.8% - 2943

78.6% - 2865

100% - 2765

Support and resistance level for the next trading week according to Pivot Point.

Pivot Point- 2989

1^st Resistance- 3052 1^st Support- 2863

2^nd Resistance- 3178 2^nd Support- 2800

3^rd Resistance- 3367 3^rd Support- 2611

Conclusion: All major technical indicators are supporting the downtrend. Major support is at the 2800 level.

Weekly Market Summary of NEPSE:

More than 8.32 crore unit shares worth Rs 47.76 Arba have been traded through 5.00 lakh transactions this week. The current market capitalization of NEPSE stands at Rs. 4,089,589.47 million.

NEPSE index and Sub-indices performance: (Decrement here is based on the previous week closed value)

The NEPSE index closed at 2926.89 points with a decline of 5.40% this week. Hotel and Tourism gained the most this week with an increment of 1.48%.

Stock with the highest monthly Beta value from the Development Bank and Hydropower sector

Ankhukhola Hydropower Company Limited (AKJCL) has the highest monthly Beta value of 4.56 followed by Mahalaxmi Bikas Bank Limited (MLBL) and Kamana Sewa Bikas Bank Limited (KSBBL) with 4.56 and 3.5 beta values respectively.

Top Ten Gainers of the week:

Manakamana Smart Laghubitta Bittiya Sanstha Limited (MKLB) is the top gainer of this week. MKLB closed at Rs. 503 with Rs. 112.3 (28.74%) increment.

All the analysis is done with the SS Pro Software. To know more about the software, click on the link below

SSpro

Top Ten Loser of the week:

ICFC Finance Limited (ICFC) price has decreased by 17.08% and its LTP stands at Rs. 961.

*SFMF and AKPL price has been adjusted due to book closure of 50% cash dividend and 17% bonus share respectively of both the companies.

Top Stocks by Turnover, Volume, and Number of Transaction:

Arun Hydropower Development Company Limited (AHPC) is the top traded company of the week. A total of Rs. 3.5 Arba worth of shares were traded this week.