Problem with "Knock on"

Last night i left my phone in working condition but today when i woke up in the morning and turned it on, it started to open up apps automatically and began to touch anywhere it want despite where i wanted to touch. I restarted it 2,3 times and it worked fine. Then when i tried to turn it on through Knock on, it wont turn on. It turns off pretty well but dont turn on. I backed up all my data and did a factory reset but i still got that problem. Please help me out with this issue. Is it hardware or software i cant figure it out. I searched online and one of thread mentioned about testing screen so i tested it through QuickMemo and found out that a little strip was unresponsive(maybe this is the reason of Knock on failure). Again i am not sure if its a hardware or software issue. Please tell me if it can be sorted out through software way. Your help is really appreciated !!

P.S. QuickMemo image is also attached below