Bullish Reversal or Bearish Continuation? Weekly Summary with Sector Analysis, Review of Top Market Movers, Highlights, and More

Fri, Mar 19, 2021 5:27 PM on Stock Market, Weekly Analysis, Featured,

-ShareSansar

106.7 points volatility was witnessed this week, with the market reaching the highest 2476.36 and the lowest 2369.66. NEPSE index gained 16.61 points (0.68%) in this trading week. Last Week market closed at 2458.48 points and this week closed at 2475.09 points on Thursday.

Candlestick pattern:

Three red candles and two green candles were formed this week. A clean shaved green candle was formed on the last trading day.

Exponential Moving Average:

We have used EMA's of 5 days' time period (blue line), 20 days' time period (red line). Recently, NEPSE Index is above both 5 days EMA and 20 days EMA. Values above shorter moving average signals for an earlier indication of possibilities of starting of bullishness. 20 days EMA is below 5 Days EMA so, need to wait till 5 days EMA to cross 20 days EMA.

Relative Strength Index:

Relative Strength Index is a momentum oscillator that measures between zero and 100. Currently, the Relative Strength Index is at 51.33 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. The signal line has crossed the MACD line, this indicates a bearish signal. The histogram is also in the negative zone. Overall MACD is indicating downward 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

23.6% - 2486.55

38.2% - 2368.76

50% - 2273.56

61.8% -2178.36

Turnover

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

Pivot Point- 2440 point

1^st Resistance- 2511 point 1^st Support- 2404 point

2^nd Resistance- 2547 point 2^nd Support- 2333 point

3^rd Resistance- 2600 point 3^rd Support- 2279 point

Conclusion: Major support is at 2370, a break out of support will give confirmation of the continuation of the downtrend.

Weekly Market Summary of NEPSE:

More than 4.88 crore unit shares worth Rs 20.61 Arba has been traded through 2.62 lakh transactions this week. The current market capitalization of NEPSE stands at Rs. 3,417,344.72 Million.

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

The NEPSE index remained stagnant this week. The top gainer sector of this week is the Hotel and Tourism with a rise of 19.28%.

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

Suryodaya Laghubitta Bittiya Sanstha Limited (SLBS) has the highest monthly Beta value of 1.94 followed by Samriddhi Finance Company Limited (SFCL) and Kisan Laghubitta Bittya Sanstha Limited (KLBSL) with 1.92 and 1.79 beta value respectively.

Top Ten Gainers of the week:

Chandragiri Hills Limited (CGH) is the top gainer of this week. CGH closed at Rs. 1292 with Rs. 488 (60.70%) 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:

Nepal Hydro Developer Limited's (NHDL) price has decreased by 21.28% and its LTP stands at Rs 307 and this is due to the 15% bonus dividend adjustment of this company.

Top Stocks by Turnover, Volume, and Number of Transaction:

Nepal Infrastructure Bank Limited (NIFRA) is the top traded company of the week. A total of Rs. 1.29 Arba worth of NIFRA shares were traded this week.