NEPSE Technical Analysis January 1 - January 5, 2017.

1. TECHNICAL ANALYSIS
1. Market Summary (as of January 5, 2017)
NEPSE at close last week (January 5, 2017) 1454.14
NEPSE high last week (January 2, 2017) 1482.85
Weekly Change 10.76 points (or 0.78%)
Daily Volume (Avg.) NPR 43.30 crores
Total Traded Amount (weekly) NPR 216.51 crores
RSI 38.41
MACD Line -38.09
Signal Line -43.73
2. Nepse Figure
Nepse (May 1, 2015 – January 5, 2017)

2. 3. Trend Analysis
The Nepse index gained 10.76 points (or up 0.78%) to close at 1454.14. Nepse gained 39.47 points on the
first two trading days of last week. However, it lost 26.03 points towards the middle of the week. The 200 day
moving average has crossed above the 50 day moving average, signaling bearish sentiment in the market. The
average volume turnover decreased to NPR 43.30 crores from NPR 52.61 crores the week prior.
4. Resistance and Support
Immediate Support 1407
Support 2 1350
Immediate Resistance 1605
Resistance 2 1671
The Nepse index hovered between the current immediate support and resistance level of 1407 and 1605
respectively. As uncertainty looms over the market, the index will likely hover between the support and
resistance level in days to come.
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 -48.68 and -48.39 respectively. In the
course of the week, the macd and signal line climbed up by 10.59 and 4.67, to close at -38.09 and -43.73
respectively. The macd line crossing above the signal line indicates a bullish trigger.

3. 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.
The RSI, at the beginning of last week, stood at 38.91 level. In the course of the week, it lost a miniscule
0.49 points to close at 38.41 level. The RSI indicator shows that the market could move sideways in the
coming weeks.
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 between the lower and middle bollinger bands, indicating a decrease in
selling pressure in the market. The distance between the upper and lower bands remain wide, signifying
moderate market volatility.

4. 6. Overview
The Nepse index increased by 10.76 points (or up 0.78%) to close at 1454.14 last week. The index continues
to show bearish presence as Nepse is below the 200-day moving average. Furthermore, the 50 day moving
average has crossed below the 200 day MA as well. The RSI is currently moving sideways, hovering at 38.41
level. The macd line shows a bullish trigger as it has moved above the signal line. However, both the lines are
at negative territory. The bollinger bands show moderate market volatility. The new support and resistance
level stands the same at 1407 and 1605 respectively.

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