NEPSE closes up the week with two days of brisk market activity and two days of market indicision (Weekly Summary With Broker Comparison, Sector Analysis, and Highlights)

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During the four trading days this week, the NEPSE index rose for two days and lost for two days, for a total of two gains and two losses. Tamu Lhosar was celebrated on Thursday, and the market was closed in honor of the occasion. The NEPSE index finished the week at 2,524.50, an increase of 4.27 points from the previous week (0.17 percent ). The index closed at 2,520.23 last week, representing a gain of 6.04 percent over the previous week.

With the index fluctuating between 2,615.47 and 2,487.41 points over the week, the index experienced 128.06 points in total volatility for the week. This week’s index volatility was 195.15 points higher than the previous week’s index volatility.

Observation and Evaluation of the Trend

When compared to the same date last year, the NEPSE index has increased by more than 25%. Although it is still higher than the all-time high of 3,198.60 reached roughly four months ago, it has fallen by more than 20% from that point. After hitting an low of 2,259.63 on December 13, the index has managed to recover almost 11.6 percent since then (most recent pivot low).

Candlestick charting is a type of charting that uses candles to represent time.

On the weekly candlestick chart, the market movement this week has resulted in the formation of a -body red candle with relatively longer wicks on both sides. A long green candle had been produced on the weekly chart the previous week.

The first trading day of the week (Sunday) resulted in a green candle, resulting in a rise of 2.82 percent for the index. However, the second candle that formed on Monday opened higher but ended lower than the preceding candle’s open, resulting in the formation of a Bearish Engulfing candlestick pattern with higher volume. As a result, the positive sentiment appeared to have evaporated, as the markets made little gain over the next two days, closing at or near their respective opening levels.

Moving Averages (MA) are a type of average that is calculated over a period of time.

Index closed just a hair higher than the 20-day Exponential Moving Average and the 5-day EMA, indicating that it is still in a bullish trend.

The 5-day exponential moving average (EMA) crossed above the 20-day moving average for the first time this week, and the crossover was still in place as of the previous trading day. Previous to this, on November 25, the 5 days EMA had fallen below the 20 days EMA for the first time.

When it comes to analyzing long-term market trends, the 200-day simple moving average (SMA) is also considered to be a critical indicator by traders and market experts. On November 23, the price fell below the 200-day simple moving average (SMA). Stock prices that fall below the 200-day moving average are considered bearish signals, indicating that the stock is on its way to declining further in value. The index is still well below the 200-day simple moving average.

Momentum Indicators are indicators of movement.

Technical analysts use the relative strength index (RSI) to determine whether a stock or index is overbought or oversold. It gauges the size of recent price fluctuations and can be used to determine whether a company or index has become overbought or oversold. It is conventional wisdom that RSI values of 70 or higher suggest that an asset is becoming overbought or overvalued and may be ready for a trend reversal or market correction. An RSI reading of 30 or lower suggests that the market is oversold or undervalued in some way.

The Relative Strength Index (RSI) on the daily timeframe is 49.17. The RSI reading breaking above 50 would signal an upward trend in the intermediate term. While this is going on, the RSI reading on the weekly chart stands at 43.12.

When looking at the daily period, on the other hand, both the MACD line and the signal line are negative, i.e. below zero, with the MACD reading being -33.08 in the daily timeframe. Still, even though both are negative, the MACD line has crossed above the signal line, which indicates that the probability of mood in the market is only a remote prospect at this time.

The MACD crossover, on the other hand, would have been more significant if the MACD reading had been positive. This is a quote that should be mentioned:

When the MACD indicator is below zero, traders who seek to profit from bullish MACD crosses should be aware that they are attempting to profit from a shift in momentum direction at a time when the moving averages are still indicating that the security may undergo a temporary sell-off.” Despite the fact that this bullish crossover can often correctly identify the reversal in the trend, it is often thought to be riskier than if the MACD was above zero.”

Both support and opposition

To determine support and resistance levels from a stock or index chart, there is no set that must be followed.

In simple terms, a resistance level is just the price above which the index has had difficulty rising. As a result, resistance can be formed by using the preceding high (or a succession of highs if they are all on the same level). Meanwhile, if the stock or index chart has fallen below the prior low, it can be interpreted to be a resistance level, because the previous support level functions as resistance if the price or index has fallen below it in the first place.

The support level, on the other hand, is simply the price below which the index has had difficulty falling downward in the past. This means that support can be found in the low of the previous period (or in series of lows if they are all at the same level). Meanwhile, if the stock or index chart has risen above the prior high, it can be inferred to be a support level, because the previous resistance level functions as a support level if the price or index has broken above it in the previous trading session.

As a result of these considerations, the NEPSE index has recovered after reaching a high of 2,615.47 earlier this month. As a result, because it represents the most recent extreme point, this level may function as the nearest resistance. Currently, the index is located within the likely resistance channel of the 2,500-2,540 price range.. Continued resistance is likely to be encountered at the 2,670 index level, and then in the 2,800-area.

It can be extrapolated that the 2,365-level may operate as instant support by combining the maximum number of previous pivot points that can be joined together. The most recent pivot low, which is currently at the 2,259.63-level, may then serve as the next support level.

The Fibonacci Retracement is a mathematical concept that describes the retracement of a sequence of numbers.

To determine S/R levels, one may also calculate the Fibonacci Retracement from the major-trend extreme points using the Fibonacci Retracement. In this case, we have picked the index level of 1,093.07 as the extreme-low and the index level of 3,193.16 as the extreme-high.

Based on these assumptions, the index broke out of the resistance zone at 2,390.93 last week, breaking through the resistance zone. Significant resistance may be found higher up on the chart at 2,697.54 and then at the ultimate peak, which is 3,193.16, respectively.

Based on these very assumptions, the nearest major support is at 2,390.93, followed by 2,143.11, which is the next significant support.

NEPSE Market Summary for the previous week:

This week, more than 3.03 crore unit shares worth Rs 17.52 Arba have been traded through 2.14 lakh transactions, representing a total value of Rs 17.52 Arba. It is currently worth Rs. 3,567,348.09 million, according to the stock market capitalisation of NEPSE.

Performance of the NEPSE index and its sub-indices: (Increment is based on the previous week closed value)

The NEPSE index rose by 0.17 percent this week, marking the third consecutive weekly gain. The manufacturing and processing industry saw the most significant increase this week, with a 6.76 percent increase in value.

Company whose stock has the highest monthly Beta value in the Microfinance and Non-Life Insurance sectors, as well as Hydropower

In terms of monthly beta value, Samling Power Company Limited (SPC) has the highest value at 0.88, followed by Dibyashwari Hydropower Company Limited (DHPL) and Shikhar Insurance Company Limited (SICL), which have the lowest values at 0.49 and 0.48, respectively.

The following are the top ten gainers for the week:

This week’s top gainer is Madhya Bhotekoshi Jalavidyut Company Limited (MBJC), which has gained the most in value. MBJC finished at Rs. 146.4, representing a Rs. 46.4 (46.40 percent) increase over the previous closing.

The SS Pro Software is used to do all of the analysis. To learn more about the software, please see the link provided below.

SSpro

The price of Mahalaxmi Bikas Bank Limited (MLBL) has declined by 22.01 percent this week, and its net tangible property (LTP) stands at Rs. 446.10. The top ten losers this week include:

Stocks with the highest turnover, volume, and number of transactions include:

Nabil Bank Limited (NABIL) is the most actively traded firm for the past seven days. This week, NABIL shares were exchanged for a total of Rs. 1.35 billion rupees (Rs. 1.35 billion rupees).

Top Buyers’ Agents of the Week include:

This week’s top purchasing broker was Vision Securities Pvt.Ltd (Broker No. 34), which stocks worth a total of Rs 87.11 crores from the market.

Buyer Brokers at the Top of the Market The following are the top ten companies that have been acquired:

The best seller’s broker of the week is:

This week’s top seller broker was Naasa Securities Co.Ltd (Broker No. 58), which had the highest volume of sales. The brokerage company has sold stocks worth Rs 2.06 Arba in an one transaction.

Top Seller Brokers and Top 10 Sold Companies include the following:

The SS Pro Software is used to do all of the analysis. To learn more about the software, please see the link provided below.

SSpro

Highlights from the previous year

The NEPSE index finished the year 2021 with a gain of 437.23 points, putting it in first place.

The index had reached an all-time high of 2,087.27 on the last day of the year 2020, making it the most valuable stock in the world at the moment. A gain of more than 75% had been realized by the year 2020 as a result of this. During the last trading day of the year, which was Wednesday of this week, the index closed at 2,524.5. As a result, the index has increased by little more than 20.94 percent in the year 2021.

Image: The NEPSE Index is represented as a logarithmic candlestick chart. Each candle indicates a period of six months. This is where the index fits into the overall scheme of things. Keep in mind that the index is cyclical in nature.

As of the last day of the year 2021, the total number of Demat accounts in the country was 47,81,438 in total. Meroshare accounts have been activated by a total of 38,93,676 people.

 

 

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