31 Jan: NEPSE Couldn't hold its yesterday's rise due to Profit booking today

On Monday, the NEPSE index fell by 14.48 points (fell by 0.50%) to 2871.05. Out of 225 companies traded, 32 companies have risen, 156 companies have declined and 2 companies have remained stable.

 

Out of the 13 sub-groups traded, share prices of 3 sub-groups have risen while share prices of 10 sub-groups have declined.

The market capitalization has reached Rs. 4 trillion 58 billion.

 Main transactions

 Technical analysis

 

Technical analysis indicators

1. Bollinger Bands

The analysis shows that the difference between the upper and lower bands of the Bollinger Bands has decreased (today's difference: 346.22) which indicates that the volatility in the market has decreased today. The market today closed above the middle band (2828.17) and seems to be holding between the upper and middle band.

2. Moving Average Convergence Divergence

Moving Average Convergence Divergence analysis shows that the MACD line and the signal line are above the zero line. The histogram is at -10.21. The MACD line has come down from (60.81) points to (59.42) points. The signal line has decreased. The decline in the MACD line indicates a decrease in buyer pressure in the market.

3. Directional movement

The Directional Movement Indicator has seen a decrease in -14 DMI line as well as ADX line. The +14 DMI line has seen an increase which indicates an increase in buying momentum in the market.

4. Candlestick

Today, Nepse has made a short body candlestick which indicates consolidation.

5. Cumulative AD line

The cumulative AD line has come down from yesterday -1638 to -1762. The total volume of Nepse stood at 8,417,058 which is 81 percent of the 21 day moving average volume (10421469.90).

Nepse has closed above the middle band today. The market seems to support the middle band area. The MACD line is above the zero line and the signal line is also above the zero line while the histogram is at 10.21. The MACD line can be seen crushing the signal line and going down which can predict a correction in the market in a few days. If the MACD line crushes the signal line upwards it shows a positive signal.

+14 DMI line has increased while ADX line seems to decrease slightly. ‍ -14 DMI has decreased. If the +14 DMI line and the ADX line go upwards, it can be seen that the moment of Nepse is positive.

The RSI today fell from 60.76 to 59.20, indicating a slight decline in RSI momentum. Nepse's next day's support seems to be in the area of ​​2828 (middle band) while the barrier seems to be in the area of ​​3000 (upper band).

Source: laltin.com