Huge Optimism in NEPSE This Week; Quick Look Into This Week's Technical Factors, Sector Comparison, And Major Highlights

Fri, May 21, 2021 3:24 PM on Stock Market, Weekly Analysis,

-ShareSansar

137.85 points volatility was witnessed this week, with the market reaching the highest 2821.86 and the lowest 2693.90. NEPSE index gained by 103.17 points (3.84%) in this trading week. Last week market closed at 2684.01 points and this week closed at 2787.18 points on Thursday.

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. Nepse index above moving average signals for Bullishness. GOLDEN CROSS on 2^nd May 2021 is still valid. 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 67.95 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 a positive zone. MACD line is above the signal line, this indicates a bullish signal. A histogram is also in a 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

161.8% - 2922

100% - 2760

78.6% - 2704

61.8% - 2660

Turnover

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

Pivot Point- 2767

1^st Resistance- 2841 1^st Support- 2713

2^nd Resistance- 2895 2^nd Support- 2639

3^rd Resistance- 2959 3^rd Support- 2575

Conclusion: Past resistance of 2760, will work as support for now.

Weekly Market Summary of NEPSE:

More than 10.87 crore unit shares worth Rs 52.60 Arba has been traded through 5.69 lakh transactions this week. The current market capitalization of NEPSE stands at Rs. 3,867,616.17 Million.

Sector-wise breakdown of the turnover of this week:

The Hydropower sector made 22.58% of the total turnover this week followed by the Commercial Bank sector with 17.13% of the total turnover.

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

The NEPSE index increased by 3.84% this week. The highest gaining sector of this week is Finance sector with a rise of 14.88%.

Stock with the highest monthly Beta value from the Microfinance, Hydropower, Development Bank and Non-Life Insurance

Multipurpose Finance Company Limited (MPFL) has the highest monthly Beta value of 2.38 followed by Universal Power Company Limited (UPCL) and United Modi Hydropower Limited (UMHL) with 2.07 and 2.00 beta value respectively.