Daily Market Summary: NEPSE Testing Strong Support Zone, Index Gains 32.22 Points With Rise in Volume, What Does Technical Analysis Say About the Trend??


The NEPSE index closed at 2,546.08 today after gaining 32.22 points from yesterday’s closing. This is a rise of 1.28% on the index. The index had lost 72.3 points yesterday.

227 scrips traded hands via 69,888 transactions.

The Float index is at 175.04 after gaining 1.34% while the Sensitive index gained 1.61% and is now at 480.97.

Nabil Bank Limited (NABIL) had the highest turnover of Rs. 17.15 crores closing at a market price of Rs. 1,485 per share. The units of Global IME Samunnat Scheme 1 (GIMES1) traded the most.

Mero Microfinance Laghubitta Bittiya Sanstha Limited (MERO) gained the most 10% and hit the positive circuit breaker. Meanwhile, Janautthan Samudayic Laghubitta Bittiya Sanstha Limited (JSLBB) lost the most 6.88%.

All sectors have gained today. Development Bank gained the most 3.45%.

Technical Analysis Highlights

The index opened at 2,508.96 and created the intraday low at 2,440.24. While it went as high as 2,548.98, it ultimately closed at 2,546.08. Thus, the index saw an intraday volatility of 108.74 points today.

This has resulted in the formation of the Hammer candlestick pattern on the candlestick chart. The hammer is a price pattern in candlestick charting that occurs when a security trades significantly lower than its opening, but rallies within the period to close near the opening price. This pattern forms a hammer-shaped candlestick, in which the lower shadow is at least twice the size of the real body. The body of the candlestick represents the difference between the open and closing prices, while the shadow shows the high and low prices for the period.

Chartists also deduce an additional insight from the hammer candlestick: the support zone. Generally, the lowest point of the lower wick signals a strong support zone for the stock or index chart. In today’s case, the wick was the lowest at 2,440.24.

A total of 9,471,311 shares exchanged hands amounting to Rs. 4.542 Arba in the turnover amount. This is higher than yesterday’s turnover of Rs. 4.09 Arba. Given that the index seems to have tested the strong support zone at the 2,500 level, the surge in volume is a positive sign.

The Relative Strength Index (RSI) is at 33.89, hence crossing above the 30 mark. The reading was at 28.8 yesterday. This indicates a potential recovery from oversold conditions in the overall stock market. Meanwhile, both the MACD line and the signal line are negative, i.e. below zero, with the MACD reading at -46.64. This reading was at -41.44 yesterday. The MACD line is below the signal line, and both are negative, hence indicating a general pessimism in the market.

Highlights of The Day:

1) Janautthan Samudayic Laghubitta (JSLBB) Proposes 26.3157% Dividend for FY 2077/78

2) Rise in Deposit Collection in Third Week of Kartik Accompanied With Twice As Much Lending

3) First Two Omicron Cases Detected in Nepal, Is this Variant Really As Deadly? What Does This Mean for Nepal’s Capital Market?

4) Hydroelectricity Investment and Development Company (HIDCL) Calls AGM, When’s the Book Closure for 8.421% Dividend?

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