Part 1: Rundown and Technical Analysis

The market operated for the 5 trading days last week. The market is open from Monday to Friday and closed on Saturdays and Sundays every week.

The NEPSE index closed at 2,078.71 last Friday after a loss of 145.07 points (6.52%). The index had closed at 2,223.78 last week with a loss of 0.51% from the week before that.

Last week, the index went as high as 2,232.23 and as low as 2,072.08, hence witnessing volatility of 160.15 points. The index had seen a volatility of 59.68 points in the week before that.

Analysis of Trend

Trend analysis is a technical analysis method that helps to predict future movement based on the current ongoing trend data. Looking at the daily charts, the trend of the NEPSE index is still in a downtrend.

Candlestick Charting and Volume

Last week's market movement has formed a bearish marubozu candle on the weekly candlestick chart. Bearish marubozu candlestick indicates that the bears had control and drove the Index down. The week before that it made a doji candle.

The highest intraday loss was 50.34 points on Monday with a turnover of Rs 1.33 Arba.

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 25.38. Meanwhile, the RSI reading on the weekly chart is 31.28. No diversion has been seen in the RSI in relation to the index, thus invalidating any attempt toward the prediction of a reversal. Furthermore, the RSI readings in the daily and weekly charts also say very little other than the obvious fact that the sentiment has been pessimistic in the last few weeks.

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 -70.80. The MACD line is below the signal line.

Price Action

The index followed the trend and continuously fall this week. A bearish marubozu pattern formed on the weekly candlestick chart. Bearish marubozu candles indicate that sellers had control from start to finish and is a very bearish sign’

1,985 to 1,930 zone may act as the nearest support.

Part 2: Insight into Important Data

More than 1.71 crores unit shares worth Rs. 6.2 Arba have been traded through 1.26 lakhs transactions last week. The current market capitalization of NEPSE stands at Rs. 2,959,486.35 million.

NEPSE index and Sub-indices performance: (Decline is based on previous week's close)

The NEPSE index declined by -6.52% last week. All the sectors closed in red.

Stocks with the highest Monthly Beta

The top 3 companies with the highest beta are Universal Power Company Limited (UPCL), National Hydro Power Company Limited (NHPC), Synergy Power Development Limited (SPDL) with 2.84, 2.73, and 2.55 respectively.

Top Ten Gainers of the week:

Balephi Hydropower Limited (BHL) is the top gainer. BHL closed at Rs. 168.6 with Rs. 55.5 (49.07%) increment.

Top Ten Losers of the week:

Nepal Investment Bank Limited (NIB) price has decreased by 29.74% and its LTP stands at Rs. 287.

All the analysis is done with the SS Pro Software. To know more about the software, click on the link below

SSpro

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

NIC Asia Bank Limited (NICA) is the top traded company of the week. A total of Rs. 25.38 crores worth of NICA shares were traded last week.

Top Buyers Brokers of the Week:

Vision Securities Pvt. Limited (Broker No- 34) was the top buyer broker this week and it has bought stocks worth Rs. 37.4 crores.

Top 10 Bought Companies:

Top Seller Brokers of the Week:

Vision Securities Pvt. Limited (Broker No- 34) was the top seller broker for this week. The brokerage firm has sold stocks worth Rs. 36.7 crores.

Top 10 Sold Companies:

All the analysis is done with the SS Pro Software. To know more about the software, click on the link below.

SSpro