The stock market has been booming lately. With the growing number of online transactions and the influx of new investors, the stock market seems to be booming. The market fell sharply on Sunday (01.08.2020) after the details explanation of monetary policy amidst of the pandemic. There is a kind of panic among the investors.
What happens to the market now?
This question is also on the minds of general investors.
Most of the investors are arguing that the market will rise while some smart
investors are hoping that the Nepse index will come to a lower point and the
market will also provide a golden opportunity to buy shares.
Lately, in Nepal, some people make buying and selling decisions based on fundamental as well as technical analysis. Fundamental and technical analysis are equally important when analyzing the market. Overviewing the recent scenario, there is a positive environment in the fundamental analysis for the market. General investors are predicting market growth. Concerning to the movement of stock market, "The wishes of the investors and the direction of the market are exactly the opposite." This can be dangerous for most retail investors. If the volume goes up and the market goes down, it will go on a weird trend.
What does the future of the market look like from the technical side?
Nepse index bounced from 1385
today (03.08.2020) and remained above 1400 is positive for the market. The
Nepse index is projected to touch 1600 points within a month if the indicator
is strongly supported by the transaction volume along with 1415 points. The
index could be between 1350 and 1360 in the near future if the Nepse index goes
down from 1385. If the index falls below 1350 points with selling pressure, the
Nepse index could come between 1250 and 1200 within a month and a half.
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