NEPSE Went Through Pullback This Week; Technical Analysis of NEPSE Index With Sector Analysis and Major Highlights

Fri, Aug 27, 2021 3:58 PM on Weekly Analysis, Stock Market, Featured,

-ShareSansar

NEPSE Index made 92.42 points volatility with the market reaching the highest 3186.47 and the lowest 3094.05. The index lost 86.73 points (2.73%) in this trading week. Last week the market closed at 3180.78 points and this week closed at 3094.05 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.

Relative Strength Index:

Relative Strength Index is a momentum oscillator that measures between zero and 100. Currently, the Relative Strength Index is at the 51.39 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% - 3004

100% - 3065

161.8% - 3240

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

Pivot Point- 3116

1^st Resistance- 3164 1^st Support- 3046

2^nd Resistance- 3234 2^nd Support- 2998

3^rd Resistance- 3352 3^rd Support- 2939

Conclusion: Longer-term trend is up but the short-term trend is in the correction phase. Support is at 3000 levels.

Weekly Market Summary of NEPSE:

More than 6.66 crore unit shares worth Rs 41.63 Arba have been traded through 4.06 lakh transactions this week. The current market capitalization of NEPSE stands at Rs. 4,323,597.24 million.

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

The NEPSE index closed at 3094.05 points with a decline of 2.73% this week. Finance gained the most this week with an increment of 4.57%.

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

Ankhukhola Hydropower Company Limited (AKJCL) has the highest monthly Beta value of 4.35 followed by Multipurpose Finance Company Limited (MPFL) and Ngadi Group Power Company Limited (NGPL) with 4.16 and 3.97 beta values respectively.

Top Ten Gainers of the week:

Jeevan Bikas Laghubitta Bittiya Sanstha Limited (JBLB) is the top gainer of this week. JBLB closed at Rs. 3906.1 with Rs. 1292 (33.10%) 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:

Hydroelectricity Investment and Development Company Limited's (HIDCL) price has decreased by 12.79% and its LTP stands at Rs. 450.

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. 2.15 Arba worth of shares were traded this week.