Weekly Wrap Up: NEPSE bids Farewell to the Year 2020 with the Highest Closing Ever; Technical Analysis, Major Highlights, and More

Fri, Jan 1, 2021 12:37 PM on Stock Market, Weekly Analysis, Featured,

-ShareSansar

131.09 points volatility was witnessed this week, with the market reaching the highest 2112.59 on Thursday and the lowest 1981.50 on Monday. NEPSE index gained 48.64 points (2.39%) in this trading week. Last Week's market closed at 2038.63 points and this week closed at 2087.27 points on Thursday.

Candlestick pattern:

Three green candles and two red candles were formed this week. Shooting Star candle was formed on Thursday at major resistance level. Shooting Star indicates a potential price top and reversal.

Exponential Moving Average:

We have used EMA's of 5 days' time period (blue line), 20 days' time period (red line). Recently, NEPSE Index is above both 5 days EMA and 20 days EMA. Values above moving average signals for bullishness.

Moving Average Convergence and Divergence:

MACD line (blue) and the signal line (red line) are in the Positive zone but moving towards the Negative zone. The signal line have crossed the MACD line, this indicates a bearish signal but still need to wait for more confirmation.

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

23.6% - 1889

38.2% - 1747

50% - 1632

78.6% - 1354

100% - 1146

Turnover

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

Pivot Point- 2060 point

1^st Resistance- 2139 point 1^st Support- 2008 point

2^nd Resistance- 2191 point 2^nd Support- 1928 point

3^rd Resistance- 2256 point 3^rd Support- 1863 point

Conclusion: Triple top chart pattern formation is still valid so, buying opportunities will be created only after the Nepse Index closing above 2100.

Listing of the Week:

Weekly Market Summary of NEPSE:

More than 4.51 crore unit shares of worth Rs 22.76 Arba has been traded through 2.07 lakh transactions this week. The current market capitalization of NEPSE stands at Rs. 2,808,748.45 Million.

Sector-wise breakdown of the turnover of this week:

The commercial bank's sector made 38.51% of the total turnover this week followed by the Life Insurance sector with 13.92% of the total turnover.

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

The NEPSE index increased by 2.39% this week. The top loser sector of this week is the Hotels sector with a fall of 5.62% followed by the Life Insurance sector with a fall of 1.70%. The top gainer sector of this week is the Trading sector with a rise of 16.21%.

Stock with the highest monthly Beta value from the Microfinance & Insurance

Nepal Life Insurance Company Limited (NLIC) has the highest monthly Beta value of 1.79 followed by Neco Insurance Company Limited (NIL) and Mahila Sahayatra Laghubitta Bittiya Sanstha Limited (MSMBS) with 1.51 and 1.49 beta value respectively.

Top Ten Gainers of the week:

RMDC Laghubitta Bittiya Sanstha Limited Promoter Share (RMDCPO) is the top gainer of this week. RMDC closed at Rs 461 with Rs 134 (40.98%) 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 Losers of the week:

Citizen Investment Trust (CIT) price has decreased by 32.75% and its LTP stands at Rs. 3430.

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

Nepal Life Insurance Company Limited (NLIC) is the top traded company of the week. A total of Rs 1.86 Arba worth of NLIC shares were traded this week.