There is No Stopping to the NEPSE Index; Weekly Summary with Sector Comparison, Technical Analysis, Major Highlights, and More

Fri, Feb 19, 2021 4:55 PM on Stock Market, Weekly Analysis, Featured,

-ShareSansar

160.04 points volatility was witnessed this week, with the market reaching the highest 2642.47 and the lowest 2482.42. NEPSE index gained 109.76 points (4.34%) in this trading week. Last Week market closed at 2526.92 points and this week closed at 2636.68 points on Thursday.

Candlestick pattern:

Two green candles and three red candles were formed this week. Snipping top candles were formed on the last three trading days.

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. Values above moving average signals for bullishness. The golden cross signal was generated by moving average on the 18th of October 2020.

Relative Strength Index:

Relative Strength Index is a momentum oscillator that measures between zero and 100. Currently, the Relative Strength Index is at 75.29 level. Traditionally the RSI is considered overbought when above 70 and oversold when below 30. A bearish divergence is seen in RSI as the index is making higher highs but RSI is making lower highs.

Moving Average Convergence and Divergence:

MACD line (blue) and the signal line (red line) are in the Positive zone. A histogram is in the negative zone. The signal line and the MACD line are overlapping each other. The overlapping pattern signifies a non-decisive state.

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

100% - 1888

1.272% - 2108

1.618% - 2383

2.618% - 3179

Turnover

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

Pivot Point- 2586 point

1^st Resistance- 2691 point 1^st Support- 2531 point

2^nd Resistance- 2746 point 2^nd Support- 2426 point

3^rd Resistance- 2826 point 3^rd Support- 2186 point

Conclusion: All major indicators are supporting the market to experience low volatility.

Weekly Market Summary of NEPSE:

More than 9.23 crore unit shares worth Rs 44.14 Arba has been traded through 3.69 lakh transactions this week. The current market capitalization of NEPSE stands at Rs. 3,633,217.66 Million.

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

The NEPSE index increased by 4.34% this week. The top gainer sector of this week is the Banking sector with a rise of 7.08%.

Stock with the highest monthly Beta value from the Microfinance & Hydropower

Support Laghubitta Bittiya Sanstha Limited (SMB) has the highest monthly Beta value of 2.82 followed by Gurans Laghubitta Bittiya Sanstha Limited (GLBSL) and Deprosc Laghubitta Bittiya Sanstha Limited (DDBL) with 2.66 and 2.48 beta value respectively.