NEPSE Analysis: Market Update and Technical Insights
The NEPSE index experienced a downturn this week, closing at 2,545.73, a loss of 50.39 points (1.94%). This follows last week’s close at 2,596.12, which was already down 0.16% from the week prior. Stay updated on the latest Nepal Stock Exchange trends with our comprehensive analysis.
Throughout the week, the index showed considerable market volatility, peaking at 2,599.21 and bottoming at 2,530.32, resulting in a 68.89 point range. The previous week saw a volatility of 73.78 points. Navigating the stock market requires understanding these fluctuations.
Sunday saw the largest intraday loss, with a 30.03 point drop and a turnover of Rs 4.90 Arba. However, the total turnover for the week reached Rs 20.39 Arba, showcasing significant trading volume in the Nepali share market.
Technical Indicators: Gauging Market Momentum
The Relative Strength Index (RSI), a key momentum indicator, reads 41.76 on the daily timeframe and 43.31 on the weekly chart. These values provide insights into the current market sentiment.
The Moving Average Convergence Divergence (MACD) lines are currently in negative territory, with the MACD reading at -22.54. This suggests a potential bearish trend in the Nepalese stock market.
The NEPSE Index is trading below both the 20-day and 5-day Exponential Moving Averages (EMAs). This positioning below the shorter moving average indicates an earlier bearish sentiment, requiring careful consideration for investment strategies.
Potential support lies in the 2,440-2,480 range, while the 2,630 zone may act as a significant resistance level. Identifying these support and resistance levels is crucial for technical analysis and informed stock trading decisions.
Over 4.32 Crore unit shares were traded through 2,60,936 transactions this week. The current market capitalization of NEPSE is Rs. 4,273,147.62 million, i.e., Rs 42.73 Kharba, reflecting the overall value of the Nepalese stock market.
Sector Performance: A Mixed Bag
The NEPSE index experienced a 1.94% decrease this week. Only one sector index managed to close in the green, highlighting the diverse performance across different industries within the Nepali stock market.
High Beta Stocks: Identifying Volatility
The three companies with the highest beta, indicating greater volatility compared to the market, are Butwal Power Company Limited (BPCL), Radhi Bidyut Company Limited (RADHI), and Unnati Sahakarya Laghubitta Bittiya Sanstha Limited (USLB), with betas of 3.182, 2.719, and 2.455, respectively. These figures are essential for understanding risk management in your investment portfolio.
Top Gainers: Stocks on the Rise
Sagar Distillery Limited (SAGAR) emerged as the top gainer this week. SAGAR closed at Rs. 514.30, marking an impressive increment of Rs. 194.80 (60.97%). Identifying top gainers can provide insights into potential growth stocks.
Top Losers: Stocks Experiencing Declines
Unnati Sahakarya Laghubitta Bittiya Sanstha Limited (USLB) experienced a significant price decrease of 21.85%, with its Last Traded Price (LTP) standing at Rs. 1,885.00. Monitoring top losers is vital for managing investment risk and re-evaluating portfolio allocations.
All the analysis is done with the SS Pro Software. To learn more about the software, click on the link below.
Trading Activity: Volume and Value Leaders
NRN Infrastructure and Development Limited (NRN) was the most actively traded company this week. Shares worth Rs. 1.50 Arba of NRN were traded, highlighting its popularity among Nepali investors. Monitoring trading activity can indicate market interest and liquidity.
Top Buyer Brokers: Identifying Key Market Participants
Naasa Securities Co. Ltd. (Broker No.- 58) was the leading buyer broker this week, purchasing stocks worth Rs. 1.63 Arba. Tracking top buyer brokers provides insight into potential institutional activity and market trends.
Top 10 Bought Companies by Top Buyer Brokers:
Top Seller Brokers: Who’s Selling?
Naasa Securities Co. Limited (Broker No.- 58) also topped the list as the leading seller broker for the week, selling stocks worth Rs. 1.64 Arba. Monitoring top seller brokers can reveal potential profit-taking or shifts in investment strategies.
Top 10 Sold Companies by Top Seller Brokers:
All the analysis is done with the SS Pro Software. To learn more about the software, click on the link below.
