Shooting Star Formation on Weekly NEPSE Chart: Technical Analysis with Major Highlights of the Week and Sector Comparison

This week Nepse Index made a 119.11 points volatility with the market reaching the highest 3063.06 and the lowest 2943.95. On Monday the index made an all-time high of 3063.06. The index gained 23.65 points (0.80%) in this trading week. Last week market closed at 2944.78 points and this week closed at 2968.43 points on Thursday.

Candlestick pattern:

On a daily candlestick pattern was not observed and on the weekly basis, a type of shooting Star has observed. A 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). At present, NEPSE Index is below 5 days EMA but above 20 days EMA. Values below shorter moving average signals for earlier indication of possibilities of starting of bearishness, but still need to wait till Nepse to close below 20 days EMA.

Relative Strength Index:

Relative Strength Index is a momentum oscillator that measures between zero and 100. Currently, the Relative Strength Index is at the 66.77 level. Traditionally the RSI is considered overbought when above 70 and oversold when below 30. A formation of bearish divergence is seen in RSI on the weekly chart as the index is making higher highs but RSI is making higher lows.

Moving Average Convergence and Divergence:

MACD line (blue) and the signal line (red line) are in the Positive zone. Since the MACD line is converging to touch Signal line, need to wait for confirmation till crossover. 

Turnover

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

Pivot Point- 2991

1^st Resistance- 3039                   1^st Support- 2919

2^nd Resistance- 3075                   2^nd Support- 2871

3^rd Resistance- 3171                    3^rd Support- 2811

Conclusion:  Nepse index made a shooting star pattern on a weekly chart, so buying opportunity will be created only after the Index closing above the high of a shooting star. A shooting star indicates a potential price top and reversal.

Weekly Market Summary of NEPSE:

More than 15.17 crore unit shares worth Rs 81.35 Arba have been traded through 8.15 lakh transactions this week. The current market capitalization of NEPSE stands at Rs. 4,139,288.52 Million.

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

The NEPSE index increased by 0.80% this week. The highest gaining sector of this week is the Hotel and Tourism sector with a rise of 6.24%.

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

Miteri Development Bank Limited (MDB) has the highest monthly Beta value of 3.77 followed by ICFC Finance Limited (ICFC) and Pokhara Finance Limited (PFL)  with 3.61 and 3.44 beta value respectively.

Top Ten Gainers of the week:  

Union Hydropower Company Limited (UNHPL) is the top gainer of this week. UNHPL closed at Rs. 428 with Rs. 123 (40.33%) 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:
United Idi-Mardi and R.B. Hydropower Limited (UMRH) price have decreased by 12.74% and its LTP stands at Rs. 493.

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

Nepal Reinsurance Company Limited (NRIC) is the top traded company of the week. A total of Rs. 3.11 Arba worth of NRIC shares were traded this week.

Top Buyers Brokers of the Week:

Naasa Securities Co.Ltd (Broker No- 58) was the top buyer broker of this week and it has bought stocks worth Rs 4.94 Arba.

Top Buyer Brokers Top 10 Bought Companies:

Top Seller Broker 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 5.19 Arba.

Top Seller Brokers 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