The NEPSE Index declines by 2.69 percent, with a bearish engulfing pattern seen on the candlestick chart.
The NEPSE index ended the day at 2,521.65, down 69.77 points from the previous day’s closing. This represents a 2.69 percent decline in the index. The index had risen by 71.2 points the day before.
A total of 67,760 transactions took place involving 238 scrips. A 2.55 percent decline in the Float index has resulted in a reading of 173.09, while the Sensitive index has down 2.25 percent to a reading of 471.89.
Nabil Bank Limited (NABIL) had the greatest turnover with a total of Rs. 30.6 crores, closing at a market price of Rs. 1,499 per share, which was the most in the industry. The most actively traded stocks were those of Mega Bank Nepal Limited (MEGA).
It was a 10 percent gain for Gurkhas Finance Limited (GUFL) and Madhya Bhotekoshi Jalavidyut Company Limited (MBJC), which enabled them to break the positive circuit breaker. Meanwhile, the Joshi Hydropower Development Company Limited (JOSHI) suffered the most loss, accounting for 8.54 percent.
Today’s market closed in the red across the board. “Non-Life Insurance” suffered the most loss, dropping 5.15 percent.
The index opened at 2,600.21 and reached an intraday high of 2,615.29. The index closed at 2,600.21. After that, it dropped as low as 2,518.80 before ending at 2,521.65, which was extremely close to the intraday low of 2,518.80. This has resulted in the construction of an extended red candle on the candlestick chart, the real body of which engulfs the actual body of the previous green candle, resulting in the formation of the Bearish Engulfing pattern on the chart.
This pattern can be significant because it indicates that sellers have gained the upper hand and are pushing the price down more aggressively (as evidenced by today’s red candle) than buyers were able to accomplish the day before (as evidenced by yesterday’s green candle).
Also included in the turnover figure is a total of 10,292,226 shares, which amounts to Rs. 5.607 Arba in the amount of money exchanged. This represents an increase above the previous day’s turnover of Rs. 5.17 Arba. As a result, Volume contributes to the enveloping process. The Bearish Engulfing pattern is significant when it happens after a price climb, which was the case in this instance, given that the S&P 500 had been advancing generally from its most recent low of 2,259.63.
It is currently at 48.89 on the Relative Strength Index (RSI). Yesterday, the reading was 54.64, marking the first time in a long time that it had risen above 50. Traders feel that the crossover at the “50” index level indicates the beginning of intermediate-term bullish momentum. The RSI, on the other hand, has fallen back below the 50-point mark today.
Meanwhile, both the MACD line and the signal line remain negative, i.e., below zero, with the MACD reading at -44.31, indicating that the market is still bearish. This reading was -51.35 when it was taken yesterday. The MACD line crossed above the signal line last week, indicating a slight bullish inclination in the market. However, if the MACD reading had been positive, the significance of the crossover would have been greater.