NEPSE Challenging Long-Term Support Trendline, Weekly Summary of Major Market Movers
Fri, Apr 1, 2022 12:08 PM on Weekly Analysis,
Part 1: Rundown and Technical Analysis
The market operated for the entire 5 trading days this week. The market is closed on Fridays and Saturdays every week.
The NEPSE index closed at 2,544.31 this week after a loss of 69.36 points (-2.65%). The index had closed at 2,613.67 last week with a loss of 0.67% from the week before that.
This week, the index went as high as 2,641.51 and as low as 2,516.12, hence witnessing volatility of 125.39 points. In the previous week, the index had seen a volatility of 56.7 points.
Analysis of Trend
The NEPSE index is down around 2.69% compared to the same date last year. It is down around 20% from the all-time high of 3,198.60 created around seven months ago.
Candlestick Charting and Volume
On the weekly candlestick chart, this week's market movement has formed a long red candle. Last week's candle was a small red candle whose upper shadow was longer than the lower shadow.
The highest intraday loss was 41.41 points on Sunday while the highest intraday gain was 40.68 points on Wednesday.
Volume was the highest on Sunday when the index lost 41.41 points.
Momentum Indicators
The relative strength index (RSI) is a momentum indicator used in technical analysis that measures the magnitude of recent price changes to evaluate overbought or oversold conditions in the price of a stock or index. Traditional interpretation and usage of the RSI are that values of 70 or above indicate that a security is becoming overbought or overvalued and may be primed for a trend reversal or corrective pullback in price. An RSI reading of 30 or below indicates an oversold or undervalued condition.
The RSI reading on the daily timeframe is 38.86, a general decline throughout the week. Meanwhile, the RSI reading on the weekly chart is 43.57.
On the other side of things, the MACD line is still negative, i.e. below zero in the daily timeframe, with the MACD reading at -37.97. The MACD line is below the signal line.
Price Action
In both the daily and weekly logarithmic NEPSE chart, the index seems to have penetrated below the maintained support trendline. This is a pessimistic signal for the bulls. However, the breakout hasn't been decisive to deduce any conclusion, and the next few trading sessions may provide vital information about the possible trend.
Figure: Weekly logarithmic NEPSE chart. (Because linear charts are deceptive for the longer term.)
Figure: NEPSE daily candlestick chart.
Part 2: Insight into Important Data
More than 2.60 crores unit shares worth Rs 13.42 Arba have been traded through 2.10 lakh transactions this week. The current market capitalization of NEPSE stands at Rs. 3,612,273.47 million.
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NEPSE index and Sub-indices performance: (Increment based on previous week's close)
The NEPSE index declined by 2.65% this week. All the sectors lost this week.
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Stocks with the highest monthly Beta (Hydropower, Development Bank, Finance)
The top 3 companies with the highest beta are Miteri Development Bank Limited (MDB), Pokhara Finance Limited (PFL) and Corporate Development Bank Limited (CORBL) with 1.89 and 1.88 beta values respectively.
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Top Ten Gainers of the week:
Emerging Nepal Limited (ENL) is the top gainer of this week. ENL closed at Rs. 1224.8 with Rs. 464.1 (61.01%) increment.
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All the analysis is done with the SS Pro Software. To know more about the software, click on the link below
Top Ten Losers of the week:
Api Power Company Limited's (API) price has decreased by 26.77% and its LTP stands at Rs. 354.
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Top Stocks by Turnover, Volume, and Number of Transaction:
Api Power Company Limited (API) is the top traded company of the week. A total of Rs. 47.40 crores worth of API shares were traded this week.
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Top Buyers Brokers of the Week:
Online Securities Pvt.Ltd (Broker No- 49) was the top buyer broker of this week and it has bought stocks worth Rs 63.25 crores.
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Top 10 Bought Companies:
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Top Seller Brokers 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 99.96 crores.
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Top 10 Sold Companies:
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All the analysis is done with the SS Pro Software. To know more about the software, click on the link below
