Even after the election announcement, investors are still reluctant in the stock market

On Tuesday, Nepse fell by 16.30 points (fell 0.58%) and reached to 2835.58. Out of 230 scrips traded, 40 companies have risen, 140 companies have declined and 11 companies have remained stable.

Out of the 13 sub-groups traded, share prices of 5 sub-groups have risen and share prices of 8 sub-groups have declined.

Market capitalization has declined to Rs. 4 trillion 07 billion.

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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: 203.59) which indicates that the volatility in the market has decreased today. The market is closing below the middle band (2864.80) today which shows that the market can test the lower 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 13.06 digits. The MACD line has come down from 48.57 points to 43.57 points. The signal line has decreased. Both the MACD line and the signal line seem to be moving downwards, which means that the market may see a correction or sideways move in a few days.

3. Directional Movement:

The Directional Movement Indicator shows an increase of +14 DMI line, a decrease of -14 DMI line and at the same time ADX line has increased by a small number. If both +14 DMI line and ADX line go upwards, then the market is understood to be positive.

4. Candlestick: 

Nepse has made a red body candlestick today which shows that the seller dominated the market today.

5. Cumulative AD Line: 

The cumulative AD line has been reduced from 1869 to 1969. The total volume of Nepse stood at 10,649,710 which is 97 percent of the 21 day moving average volume (10,928,416.62).

Nepse has closed below the middle band today. Which seems to have increased the selling pressure in the market. The MACD line is above the zero line and the signal line is also above the zero line while the histogram is at 13.00. According to MACD, there seems to be a selling momentum in the market.

The +14 DMI line has increased, the ADX line seems to have increased by a few points, while the १४ -14 DMI line has decreased. The RSI today fell from 55.87 to 53.97, indicating a slight decline in RSI momentum.

Nepse seems to have an area of ​​support 2820 near the next day and another support lower band is 2763. The area closest to Nepse seems to be the area of ​​2920.

Source: laltin.com