Part 1: Rundown and Technical Analysis
NEPSE Weekly Market Wrap-Up: A Bullish Rebound
The Nepalese stock market witnessed a resurgence this week, trading for four days due to Monday’s public holiday for Ghatasthapana. The NEPSE Index closed at 2,652, marking a significant gain of 140.09 points or 5.58%. This is a welcome change from last week’s close of 2,511.91, which reflected a 6% decline.
Market volatility was evident, with the index hitting a high of 2,689.67 and a low of 2,483.15, resulting in a swing of 206.52 points. The previous week saw a volatility of 126.06 points. Investing in Nepal requires careful monitoring of such fluctuations.
Sunday saw the highest intraday gain of 111.71 points, with a turnover of Rs 8.73 Arba. However, the total stock market turnover for the week stood at Rs 21.85 Arba.
Momentum Indicators
The Relative Strength Index (RSI) on the daily timeframe is at 42, while the weekly RSI reading is 46.76. These figures provide insight into stock market trends and whether stocks are overbought or oversold.
Conversely, the Moving Average Convergence Divergence (MACD) and Signal lines are in the negative zone, with the MACD reading at -43.40. This suggests potential bearish sentiment in the market.
The NEPSE Index is currently below both the 20-day Exponential Moving Average and the 5-day Exponential Moving Average. An index below the shorter moving average may indicate a short-term bearish outlook.
The 2,620 – 2,580 level may act as immediate support, while the 2,765 – 2,725 zone is expected to be a major resistance area. Technical analysis plays a crucial role in identifying these key levels for stock trading.
Over 4.87 Crore unit shares were traded through 2,61,704 transactions this week. The current market capitalization of NEPSE is Rs. 4,433,441.64 million, which is Rs 44.33 Kharba.
NEPSE index and Sub-indices performance: (Gain/ loss is based on the previous week’s close)
The NEPSE index increased by 5.58% this week. Only one sector index closed in the red, showing broad market strength. Evaluating sector performance is essential for diversified investment strategies.
Stocks with the highest Monthly Beta:
The top three companies with the highest Beta are Saptakoshi Development Bank Limited (SAPDBL), Sindhu Bikas Bank Limited (SINDU), and Balephi Hydropower Limited (BHL) with 1.942, 1.941, and 1.808, respectively. High Beta stocks are typically more volatile than the overall market.
Top Ten Gainers of the Week:
Him Star Urja Company Limited (HIMSTAR) was the top gainer, closing at Rs. 693 with an increment of Rs. 219.50 (46.36%). Identifying top performing stocks can be a valuable strategy for investors.
Top Ten Losers of the Week:
Siddhartha Premier Insurance Limited (SPIL)’s price decreased by 9.24%, with its Last Traded Price (LTP) standing at Rs. 718.80. Monitoring market losers is equally important to manage risk.
Top Stocks by Turnover, Volume, and Number of Transactions:
Nepal Reinsurance Company Limited (NRIC) was the top-traded company of the week. Rs. 1.70 Arba worth of NRIC shares were traded this week. Trading volume often indicates market interest and liquidity in a stock.
Top Buyers Brokers of the Week:
This week, Naasa Securities Company Limited (Broker No.- 58) was the top buyer broker, purchasing stocks worth Rs. 1.28 Arba. Analyzing broker activity can provide insights into institutional buying and selling trends.
Top 10 Bought Companies by Top Buyer Brokers:
Top Seller Brokers of the Week:
Naasa Securities Company Limited (Broker No.- 58) was also the top seller broker for this week, selling stocks worth Rs. 1.14 Arba.
