In today’s closing session, the NEPSE index closed at 2,591.42, up 71.2 points from the previous week’s close. In terms of the index, this is a considerable gain of 2.82 percent. The index had risen 12.53 points on Thursday, the previous trading day.
Nabil Bank Limited (NABIL) had the greatest turnover with Rs. 32.07 crores, and the stock closed at a market price of Rs. 1,524 per share, the highest in the industry. The most actively traded stocks were those of Arun Valley Hydropower Development Company Limited (AHPC).
A total of 21 scrips have technically gained 10%, resulting in the tripping of the positive circuit breaker in the process. Meanwhile, Gurkhas Finance Limited (GUFL) suffered the most loss, falling 5.57 percent. Last Thursday, GUFL had lost 6.74 percent of its value.
Only the “Hydropower” and “Finance” sector indexes were in the red, with Finance suffering the worst loss of 1.12 percent. Among all other sector indices that finished in the green, the “Life Insurance” index gained the most, with 9.78 percentage points.
Aspects of Technical Analysis to Consider
The index opened at 2,531.42 and did not trade any lower than that level during the day. As a result, while the stock reached a high of 2,595.63, it eventually finished at 2,591.42, which is still extremely close to the intraday high. In the candlestick chart, this has resulted in the formation of a long green candlestick with a modest upper wick. Following the creation of an uncertain small-body candle on Thursday, this is a promising indication to pay attention to.
A total of 8,601,956 shares were exchanged, resulting in a turnover amount of Rs. 5.17 Arba (rupees and cents). This represents an increase above the previous Thursday’s turnover of Rs. 4.49 Arba. As a result, Volume has also contributed to today’s upward movement.
The Relative Strength Index (RSI) is at 54.64, which indicates a bullish trend. The reading was 48.96 on Thursday, according to the data. As a result, the RSI reading has risen over 50 for the first time in a long time, indicating that the market is experiencing intermediate-term rising momentum.
Meanwhile, both the MACD line and the signal line are negative, i.e. below zero, with the MACD reading at -51.35, indicating that the market is in a bearish trend. This reading was -66.68 on Thursday, when the test was performed. While this is true, it is vital to notice that the MACD line has already crossed above the signal line in the past week, indicating a slight bullish attitude. If the MACD value had been positive, the significance of the crossover would have been greater.
The price movement can be used to determine whether or not the index level of 2,670 will serve as significant resistance moving forward. Aside from that, it can be extrapolated that the next big resistance zone may be found between 2,800 and 2,860 index points, which corresponds to the previous pivot highs and lows.
Meanwhile, the index level of 2,500, which had previously served as a price-action and psychological resistance zone, may now serve as the nearest support zone for the index. If the 2,365 index level is breached, the next support level, which is at 2,259.63, may appear, which would be the level of the most recent pivot low.