Nepse Weekly Technical Analysis September 11 - September 15, 2016

1. TECHNICAL ANALYSIS
1. Market Summary (as ofSeptember 15, 2016)
NEPSE at close last week (September 15,2016) 1815.17
NEPSE high last week (September 12, 2016) 1818.69
Weekly Change -7.88 points (or -0.43%)
Daily Volume (Avg.) NPR 124.99 crores
Total Traded Amount (weekly) NPR 374.96 crores
RSI 57.68
MACD Line 20.29
Signal Line 16.68
2. Nepse Figure
Nepse (May1, 2015 – September 15, 2016)

2. 3. Trend Analysis
The Nepse index lost 7.88 points (or down 0.43%) to close at 1815.17 last week. The index corrected itself by
9.76 points and moved sideways in the course of last week. The average volume turnover last week was
124.99 crores as compared to 170.75 crores the week prior. The index continues to move above the 50 day
and 200 day moving average, signifying positive outlook of the market.
4. Resistance and Support
Immediate Support 1680
Support 2 1600
Immediate Resistance 1880
Resistance 2
The Nepse index moved sideways and hovered around the early 1800’s level again last week. The support
and resistance level stands the same at 1680 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 21.19 and 14.48 respectively. In the
course of the week, the macd line declined by 0.90 points, where as the signal line climbed up by 2.20
points. At the end of the week, the macd and the signal line ended at 20.29 and 16.68 level respectively.
If the macd line moves below the signal line, it could indicate a slowdown in the bullish presence 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 58.29 points. In the course of the week, it lost a minute
0.61 points to close at 57.68 level. In the current situation, the RSI shows a neutral stance as it is moving
sideways, along with the Nepse index.
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 upper and middle bollinger bands. The index has deviated
from the upper band, indicating a decrease in the buying pressure in the market. The distance between the
upper and lower bands has diverged slightly, indicating a moderate increase in market volatility.

4. 6. Overview
The Nepse index fell by 7.88 points (or down 0.43%) to close at 1815.17 last week. Nepse is moving above
the 200-day, as well as 50-day moving average, signifying long-term positive outlook of the market. The
macd indicator show a decline in bullish presence in the market as the macd line show signs of moving below
the signal line. The RSI is moving sideways and closed at 57.68 level. The bollinger bands show a moderate
increase in market volatility as the upper and lower bands have diverged slightly. The support and resistance
level stands the same at 1680 and 1880 respectively.

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