Weekly Wrap Up: NEPSE at All-Time High in First Week of 2021; Sector Analysis, Technical Indicators, and Major Highlights

Fri, Jan 8, 2021 4:19 PM on Stock Market, Weekly Analysis, Featured,

-ShareSansar

This week NEPSE closed at 2194.48 points, its highest point ever. 111.59 points volatility was witnessed this week, with the market reaching the highest 2216.44 and the lowest 2104.85. NEPSE Index gained 107.21 points (5.14%) in this trading week. Last Week market closed at 2087.27 points and this week closed at 2194.48 points on Thursday.

Candlestick pattern:

Three green candles and two red candles were formed this week. Small body candles were formed on the last three trading days.

Exponential Moving Average:

We have used EMA's of 5 days' time period (blue line), 20 days' time period (red line). At present, NEPSE Index is above both 5 days EMA and 20 days EMA. Values above moving average signals for bullishness. The golden cross signal was generated by moving average on the 18th of October,2020.

Moving Average Convergence and Divergence:

MACD line (blue) and the signal line (red line) are in Positive zone. The signal line has crossed the MACD line, this indicates a bullish signal. The histogram is also in the positive zone. Overall MACD is indicating upward momentum.

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

100% - 1888

1.272% - 2108

1.618% - 2383

2.618% - 3179

Turnover

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

Pivot Point- 2171 point

1^st Resistance- 2238 point 1^st Support- 2126 point

2^nd Resistance- 2283 point 2^nd Support- 2059 point

3^rd Resistance- 2339 point 3^rd Support- 2003 point

Conclusion: All major indicators are supporting the bullish trend. Strong support is at 2100.

Listing of the Week:

Weekly Market Summary of NEPSE:

More than 5.87 crore unit shares of worth Rs 27.17 Arba has been traded through 2.34 lakh transactions this week. The current market capitalization of NEPSE stands at Rs. 2,955,864.65 Million.

Sector-wise breakdown of the turnover of this week:

The commercial bank's sector made 35.16% of the total turnover this week followed by the Non-Life Insurance sector with 15.16% 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 5.14% this week. The top gainer sector of this week is the Non-Life Insurance sector with a rise of 6.74%.

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

National Microfinance Laghubitta Bittiya Sanstha Limited (NMFBS) has the highest monthly Beta value of 1.75 followed by Nepal Life Insurance Company Limited (NLIC) and Rastriya Beema Company Limited (EBCL) with 1.68 and 1.42 beta value respectively.

Top Ten Gainers of the week:

Narayani Development Bank Limited (NABBC) is the top gainer of this week. Narayani Development Bank closed at Rs 632 with Rs 199 (45.96%) 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:

Guheshwori Merchant Banking and Finance Limited's (GMFIL) price has decreased by 6.06% and its LTP stands at Rs 186.

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 1.61 Arba worth of NLIC shares were traded this week.