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The Government Won't Fall Anytime Soon! Spinning Top Candle Formation in the Market Indicates Reversal!

Author

Dipesh Ghimire

The Government Won't Fall Anytime Soon! Spinning Top Candle Formation in the Market Indicates Reversal!

On the second trading day of the week, the NEPSE index closed with a decline. On Monday, the NEPSE index dropped by 12.84 points to settle at 2676.15 points. Similarly, the Sensitive Index fell by 1.36 points, the Float Index by 0.83 points, and the Sensitive Float Index by 0.52 points.

The trading volume also saw a dip. Compared to the previous day’s turnover of approximately NPR 7.5 billion, today's market traded 62,758 transactions across 317 stocks, totaling NPR 5.62 billion with a volume of 11.5 million shares.

Key Performers

  • Emerging Nepal's stock price surged the most, gaining 8.76%.

  • Mahila Laghubitta's stock increased by over 7%.

  • Citizens Bank Debenture 2086 rose by 6.11%.

  • On the negative side, Swabhimaan Laghubitta hit the lower circuit, losing NPR 237.90, closing at NPR 2141.10.

  • Khanikhola Hydropower's stock fell by 8.21%.

By Trading Value

  • NRN Infrastructure & Development topped the list, with NPR 352.7 million in trading.

  • Himalayan Distillery saw a turnover of approximately NPR 280 million, likely influenced by its bonus dividend announcement (15% bonus shares and 5% cash dividend).

  • Joshi Hydropower traded shares worth NPR 125 million.

Sub-Index Analysis

Out of the 13 sub-indices:

  • 5 sub-indices rose, while 8 declined.

  • The Production and Processing sub-index saw the highest growth of 1.06%, driven by Himalayan Distillery’s performance.

  • Significant declines were noted in the Life Insurance, Non-Life Insurance, and Trading sub-indices, each falling by more than 1%.

Technical Analysis

The market displayed a Spinning Top candle pattern, suggesting potential reversal. The Higher Low (HL) level at 2660 points continues to provide strong support, signaling a chance for market recovery.

Broker Analysis

  • Top Sellers: Broker No. 58 led sales with NPR 477.2 million, while purchasing only NPR 368.5 million.

  • Top Buyers: Broker No. 42 emerged as a net buyer, acquiring NPR 220 million and selling around NPR 200 million.

  • The buy-sell ratio shows that 7 out of the top 10 brokers were predominantly sellers.

AI Traffic Light

NEPSE Trading's AI Traffic Light system still flashes yellow, signaling caution in market activity.

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