NEPSE rises by 7.39 points: Investors in 'wait and see' mood !

NEPSE

The NEPSE index, which has been in a continuous decline since Sunday, November 14, has stopped for the seventh day. The market, which had fallen by almost 70 points for six days, managed to take a positive turn on Tuesday. Today, the NEPSE rose by 7.39 points to 2614.07 points. Despite the improvement in the index, today's total trading volume has decreased. The market, which had a share turnover of Rs 4.66 billion on Monday, fell to Rs 3.755 billion on Tuesday. Today, the indices of 9 out of 13 subgroups increased. Development Bank, Finance, Hotel and Tourism, Hydropower, Investment, Life Insurance, Production and Processing, Mutual Fund and Other subgroups showed a general improvement. Four subgroups also fell overnight today. Today, shares of Swastik Laghubitta, Srinagar Agritech Industries and Upper Mailung Khola Hydropower showed a positive circuit level. Apart from this, the decline rate of other declining companies was limited to less than 4 percent. Today, Ngadi Group Power topped the list in terms of trading volume. Shares of the company worth about Rs 319.2 million were traded. After that, Lakshmi Sunrise Bank traded more than Rs 110 million, while shares of Radhi Vidyut Company were traded worth about Rs 100 million. Although the market appeared to be recovering for the first time after seven days of pressure, the decrease in overall trading volume is seen as a sign of investor caution.

Technical Analysis

The NEPSE index has shown a strong reaction today after reaching an important technical support area. The market has turned green by testing the 50-day moving average, Bollinger middle band and ascending trendline support. However, the market's failure to break yesterday's candle high indicates that the trend is still weak and investors are in a 'wait and see' mode. Which can be interpreted as waiting for a one-candle buy.

According to analyst Ajit Khanal, the index has now reached the neutral zone (around 50), which indicates that the market is neither oversold nor overbought.

But the decline in trading volume today—even when the market is green—has further reinforced the weakness of the trend. The market had gapped up today and made a high point of the day (day high) at 12:24 PM. But the market weakened immediately after that.

In the last trading minute, the market recovered abruptly and rose by more than 6 points, indicating that some short-term buying has occurred. Today, the share of trading in the banking sector increased. However, the share of trading in the hydro sector has reached almost 48%, which indicates that the market activity is mainly concentrated in the energy subgroup.

Trading in other sectors has been negligible.

Broker analysis

Looking at the trading activity of 10 major brokers, 6 brokers have bought more than they sold. This indicates that there is some institutional and professional buying support in the market. In the context of continuous selling by large brokers, it can be estimated that some large investors have entered the market to some extent today. In today's market, it seems that there has been a relatively high sale from brokers No. 58,34,62 and 57. Similarly, there has been a relatively high buy from brokers No. 49,45,48,28,42 and 44. Similarly, looking at the stock, it seems that investors have bought 53 thousand units from broker No. 33, i.e. 81 percent of the total buy. Its average buy is 351. Similarly, investors have bought 51 thousand units from broker No. 81, i.e. 37 percent of the total buy. Similarly, 46 thousand units have been bought from MMKJL 48. On the other hand, on the sell side, 4 lakh 31 thousand units have been sold from LSL 58. Which is 88 percent of the total sell. Its average price is 228. Meanwhile, 61,000 shares were sold from SHIVM 81, while 55,000 shares were sold from NBL 48.