NEPSE Gained 225.21 Points This Week, What Does Technical Analysis Say About Upcoming Trend Tendency?

Fri, Oct 29, 2021 3:48 PM on Weekly Analysis, Stock Market,

-ShareSansar

NEPSE index made 260.26 points volatility with the market reaching the highest 2806.65 and the lowest 2546.39. The index gained 225.21 points (8.81%) in this trading week. Last week market closed at 2556.95 points and this week closed at 2782.16 points on Thursday.

Exponential Moving Average:

NEPSE index is above both 5 days EMA and 20 days EMA. The index above moving average signals for Bullishness. Recently, 5 days EMA has crossed its 20 Days EMA forming a Golden crossover pattern. The Golden cross is a technical pattern indicating the potential for a major rally.

Relative Strength Index:

Relative Strength Index is a momentum oscillator that measures between zero and 100. Currently, the Relative Strength Index is at the 56.21 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 negative zone but the histogram is in the positive zone. The MACD line has crossed the signal line and the MACD line is above the signal line, this indicates a possibility of a trend reversal. MACD is indicating the possibility of upward 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

38.2% - 2761

50% - 2850

61.8% - 2938

78.6% - 3065

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

Pivot Point- 2711

1^st Resistance- 2877 1^st Support- 2617

2^nd Resistance- 2971 2^nd Support- 2451

3^rd Resistance- 3101 3^rd Support- 2321

Conclusion: All major technical indicators are supporting the uptrend. Major resistance is at the 2900 level.

Weekly Market Summary of NEPSE:

More than 4.65 crore unit shares worth Rs 25.40 Arba have been traded through 2.99 lakh transactions this week. The current market capitalization of NEPSE stands at Rs. 3,894,926.59 million.

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

The NEPSE index increased by 8.81% this week. The Finance sector gained 19.69% this week while the Investment sector gained the least 3.65% in value.

Stock with the highest monthly Beta value from the Microfinance and Non-life insurance

Radhi Bidhyut Company Limited (RADHI) has the highest monthly Beta value of 1.15 followed by Nepal Hydro Developer Limited (NHDL) and Best Finance Limited (BFC) with 1.13 and 1.05 beta values respectively.

Top Ten Gainers of the week:

Best Finance Company Limited (BFC) is the top gainer of this week. BFC closed at Rs. 586 with Rs. 185 (46.13%) 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:
Mero Microfinance Laghubitta Bittiya Sanstha Limited's (MERO) price has decreased by 13.22% and its LTP stands at Rs. 1471.