Comprehensive Analysis of NEPSE Indicators of Shrawan 13

Market Overview

The NEPSE index has experienced a significant surge today, closing at 2681.56, which is an impressive increase of 113.42 points. The market turnover for the day stands at 15.81 Arba. This substantial growth can be attributed to the recent positive monetary policy from the Nepal Rastra Bank (NRB), which has removed the cap of 20 crores for loans against shares for institutional groups.

Moving Averages

• 50-Day Moving Average: The market has closed well above the 50-day moving average, indicating strong bullish momentum. This suggests that the recent prices are significantly higher than the average price over the past 50 days, reinforcing the positive sentiment.

Pivot Points

• Pivot Point (P): 2068
• Resistance (R1): 2102
• Support (S1): 2003

Today’s pivot point is at 2068, with the first level of resistance at 2102 and the first level of support at 2003. The market is currently well above these levels, indicating a strong upward trend.

MACD (Moving Average Convergence Divergence)

The MACD indicator shows a dark green histogram with increasing height, suggesting a strong upward trend in the market. If the histogram starts to decrease and turns light green, it may indicate a potential downturn.

Bollinger Bands

The candlestick is positioned on top of the upper band of the Bollinger Bands, which is typically a bullish signal. This indicates that the market is experiencing higher volatility and is likely to continue in an upward direction.

Relative Strength Index (RSI)

The RSI value is at 89.12, placing it in the above uptrend zone. An RSI above 70 generally indicates that the market is overbought, but it also confirms the current bullish momentum.

Fibonacci Retracement

According to Fibonacci retracement levels:

• The current candle is above the 0.5 level (2519).
• The next resistance level is at the 0.618 level (2686).
• The lower support is at the 0.382 level (2352).

These levels are calculated based on the Fibonacci sequence, taken between the points 1811 and 3228. The fact that the market is above the 0.5 level suggests continued bullish behavior with the next target being the 0.618 level.

Conclusion

Today’s NEPSE indicator analysis by Green NEPSE highlights a robust bullish trend supported by various technical indicators such as moving averages, MACD, Bollinger Bands, RSI, and Fibonacci retracement levels. The significant growth is also fueled by the recent positive monetary policy from the Nepal Rastra Bank, which has removed the loan cap for institutional groups. Investors can leverage this analysis to make informed decisions and capitalize on the upward momentum in the market.

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