The Nepalese equity market saw notable buying enthusiasm since the beginning of Tuesday’s session. After a surge of 60 points, the index saw minor correction at mid-day. Nonetheless, the bourse continued to advance hitting the two hour circuit breaker limit of positive 5 percent . After a trading halt for 40 minutes, the index rose another 1 percent , as Nepse closed the session at day’s circuit filter of positive 6 percent . Nepse witnessed a massive gain of 137.18 points to end at 2,418.84.
The day’s surge also helped the index break its 5-day declining run as the bourse saw aggressive buying with stocks trading at multi-month low. In the truncated trading hours, turnover also remained capped below Rs. 2 billion.
Development Bank and Finance sectors were the major winners with the sub-indices rallying 9.20 percent and 8.62 percent . Trading and Investment sectors also rose by over 8 percent each. All other sectors ended the day in green.
Shares of Nabil Bank Ltd were traded the most with a turnover of over Rs. 90 million. National Hydropower Company Ltd, ICFC Finance Ltd and Api Power Company Ltd followed suit with turnovers of Rs. 70 million, Rs. 50 million and Rs. 46 million. Arun Kabeli Power Ltd, Hydroelectricity Investment & Development Company Ltd and Mahalaxmi Bikas Bank Ltd were among other actively traded shares.
National Hydropower Company Ltd, Bishal Bazar Company Ltd, Nepal Finance Ltd and other 40 companies hit the upper circuit limit of 10 percent , while many other saw notable gains on the day.
No stocks ended in the red on Tuesday.
As per the ARKS technical analysis, the index formed a firm bullish candlestick helping the index recoup almost all of its prior 2-day loss. The MACD and RSI indicators are also exhibiting signals of recovery, but volume increase is necessary for a long-term recovery. The immediate support is $2,250.