Nepse technical analysis october 16 october 20, 2016

50 %
50 %
Information about Nepse technical analysis october 16 october 20, 2016

Published on October 24, 2016

Author: KritiCapital

Source: slideshare.net

1. TECHNICAL ANALYSIS 1. Market Summary (as of October 20, 2016) NEPSE at close last week (October 20, 2016) 1794.47 NEPSE high last week (October 16, 2016) 1803.74 Weekly Change -25.41 points (or -1.40%) Daily Volume (Avg.) NPR 60.28 crores Total Traded Amount (weekly) NPR 301.43 crores RSI 53.19 MACD Line 5.23 Signal Line 4.26 2. Nepse Figure Nepse (May1, 2015 – October 20, 2016)

2. 3. Trend Analysis The Nepse index ended in the red for majority of last week. The index lost 25.41 points (or down 1.40%) to close at 1794.47. However, Nepse gained back 6.58 points on Thursday of last week. The index is hovering just above the 50 day moving average, which shows the 50 day MA to be a support level to the index. Nepse is also moving well above the 200 day MA, indicating that the long term market outlook looks positive. The average volume turnover decreased to NPR 60.28 crores from NPR 94.98 crores the week prior. 4. Resistance and Support Immediate Support 1730 Support 2 1680 Immediate Resistance 1880 Resistance 2 The Nepse index remained in the late 1700s level throughout last week. Although the index remained bearish for most of last week, the volume turnover did not support the bearish movement in the market. It seems that positive first quarter report of the BFIs could push the market up in the coming weeks. The new support and resistance level stands at 1730 and 1880 respectively. 5. Trend Indicator a.) MACD The MACD is a momentum oscillator formed by using two different types of moving averages, which provides specific buying or selling signals. When a MACD line crosses above the signal line, it is considered to be a positive sign and indicates a time to buy, and vice-versa. The Macd and the signal line, at the beginning of last week, stood at 6.01 and 2.52 respectively. In the course of the week, the macd line decreased by 0.78 points, whereas the signal line increased by 1.74 points to close at 5.23 and 4.26 points respectively. The macd line could cross below the signal line, which would indicate a bearish trigger in the market. b.) RSI RSI is a form of leading indicator that is believed to be most effective during periods of sideways movement. Such indicators may create numerous buy and sell signals that are useful when the market is not clearly trending upwards or downwards.

3. The RSI, at the beginning of last week, stood at 55.93 points. In the course of the week, it lost 2.73 points to close at 53.19 level. The RSI continues to give a neutral stance as it is hovering around the 50’s zone. c.) Bollinger Bands The Bollinger Band is a technical indicator that consists of a moving average (21-day) along with two trading bands above (upper band) and below it (lower band). The bands are an indication of volatility, which are represented by calculating standard deviation. The benchmark index is hovering just above the middle bollinger band, where the mid band is acting as a support level to the index. The upper and lower bands have converged, which shows a decrease in market volatility.

4. 6. Overview The Nepse index declined by 25.41 points (or down 1.40%) to close at 1794.47 last week. Nepse is hovering just above the 50 day moving average, which shows short term nervousness in the market. However, the index is moving well above the 200 day moving average, indicating long term positive outlook of the market. The macd indicator gives a bearish indication as macd line could cross below the signal line. The RSI is hovering at 50’s zone, giving a neutral stance. The gap between the upper and lower bands has decreased in the course of last week, suggesting a decline in market volatility. The new support and resistance level stands at 1730 and 1880 respectively.

Recommended Vamshi_Mtech_RESUME Vamshi Krishna Nepse Technical Analysis June 5 - June 9, 2016 Kriti Capital & Investments Ltd. Nepse Technical Analysis January 10 - January 14, 2016 Kriti Capital & Investments Ltd. Nepse Technical Analysis September 20 - September 24, 2015 Kriti Capital & Investments Ltd. Nepse technical analysis jan 18 jan 22, 2015 (eng & nep) Kriti Capital & Investments Ltd. Nepse Technical Analysis 24 may - 29 may, 2015 Kriti Capital & Investments Ltd. Nepse Technical Analysis March 20, 2016 - March 24, 2016 Kriti Capital & Investments Ltd. Nepse Technical Analysis July 10 - July 14, 2016 Kriti Capital & Investments Ltd. Nepse technical analysis mar 01 mar 04, 2015 (eng & nep) Kriti Capital & Investments Ltd. Nepse Technical Analysis August 14 - August 18, 2016 Kriti Capital & Investments Ltd.

Vamshi_Mtech_RESUME Vamshi Krishna

Nepse Technical Analysis June 5 - June 9, 2016 Kriti Capital & Investments Ltd.

Nepse Technical Analysis January 10 - January 14, 2016 Kriti Capital & Investments Ltd.

Nepse Technical Analysis September 20 - September 24, 2015 Kriti Capital & Investments Ltd.

Nepse technical analysis jan 18 jan 22, 2015 (eng & nep) Kriti Capital & Investments Ltd.

Nepse Technical Analysis 24 may - 29 may, 2015 Kriti Capital & Investments Ltd.

Nepse Technical Analysis March 20, 2016 - March 24, 2016 Kriti Capital & Investments Ltd.

Nepse Technical Analysis July 10 - July 14, 2016 Kriti Capital & Investments Ltd.

Nepse technical analysis mar 01 mar 04, 2015 (eng & nep) Kriti Capital & Investments Ltd.

Nepse Technical Analysis August 14 - August 18, 2016 Kriti Capital & Investments Ltd.

Add a comment