Feb 1 NEPSE: Investors attracted in hydro sector, transaction amount also increased

On Tuesday, the NEPSE index rose by 19.26 points (0.67% increment) to 2891.30. Of the 223 scrips traded, 148 rose, 36 declined and 6 remained unchanged.

Out of the 13 sub-groups traded, share prices of 9 sub-groups have risen while share prices of 4 sub-groups have declined.

The market capitalization has reached Rs. 4 trillion 86 billion.

Main Transactions

Technical Analysis

Technical Analysis Indicators

1. Bollinger Bands

Analysis shows that the difference between the upper and lower band of Bollinger Bands has decreased (today's difference: 321.75) which indicates that the volatility in the market has decreased today. The market today closed above the middle band (2839.49) 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 8.25 digits. The MACD line has come down from (59.42) points to (59.33) 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 showed a decrease of -14 DMI line as well as ADX line and +14 DMI line. Which indicates that the buying momentum in the market has decreased.

4. Candlesticks: 

Today, Nepse has created a short body candlestick that indicates consolidation i.e. market will not go downward or upward but it can move sideward to increase or lower volume of trade.

5. The Cumulative AD Line: 

The cumulative AD line has increased from 1762 to 1650 yesterday. The total volume of Nepse stood at 11,171,900 which is 105 percent of the 21-day moving average volume (10,601,286.10).

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 8.29. The MACD line can be seen crushing the signal line and going down and consolidating in the same area. If the MACD line crosses the signal line and goes upwards, it shows a positive signal and if it stays consolidated in the same area, Nepse may also go sideways for a few days.

The +14 DMI line has decreased, the ADX line has decreased slightly, while the ‍-14 DMI line has also decreased. If +14 DMI line and ADX line go upwards then Nepse's moment can be seen to be positive. RSI has risen from 59.20 to 60.72 today, indicating a slight increase in RSI momentum. Nepse's next day's support seems to be in the area of ​​2839 (middle band), while the resistance seems to be in the area of ​​2905 and 3000 (upper band).

Source: laltin.com