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Nepse Commentary 21st Magh (Monday)

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Nepse Commentary 21st Magh (Monday)
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CMP: 1144.27

The pivot table for tomorrow (22st Magh)

S3

S2

S1

P

R1

R2

R3

1129.57

1136.86

1140.56

1147.85

1151.55

1158.84

1162.54

 

 

 

 

Today’s (21st Magh, Monday) volume           : Rs 36.436 crores

Yesterdays (20th Magh, Sunday) volume   : Rs 41.570 crores

 

The Trading volume:

Today’s trading volume Rs 36.436 crores has been lower as compared to yesterday’s trading volume of Rs 41.570 Crores. Indication seems tomorrow market won’t be ready for the further slide or market may show saturation at the lower support.

Commentary:

  • - As we indicated yesterday; market may form a spike below and it fell down today but it could not rise to close above 1150.
  • - Current market price 1144.27 is still lower than tomorrow’s pivot 1147.85. That indicates market to find another support or a new low tomorrow also.
  • Today market traded in lower volume than the yesterday’s.

Recommendations:

  • - Market is still to slide with saturation tomorrow. Or market may make a new low below current level and rise.
  • - Market may give a buy point around 1136 and rise for short term.
  • - Waiting tomorrow also may be wise decision for conventional buyers. But aggressive buyers may like to buy for averaging their positions.

Fundamental Outlook:

  • - The online trading state-of-art solution provided by Nepal Stock Exchange seems executed properly. But new branches for trading stations still lacking to penetrate the market.
  • - The margin trading from the brokers is permitted. This is good for the market. Still brokers do not have much branches to expand.
  • - How will broker manage the margin trading if they don’t have enough pool of financial liquidity to lend for gearing to the traders?
  • - Are brokers equipped with Risk Management on providing the trading leverage?
  • - If liquidity in the bank is trapped or tapering; how broker can manage liquidity to provide ‘trading on the margin’ to the investors?

Answer to these will form a trend to market in the near future.

Happy Trading……..!!!!!

  

Nepse Daily Candle Chart Illustrates:

  1. Longer red body today as market slide.
  2. Support for tomorrow at 1136 level.
  3. If market rises the resistant for tomorrow as 1162 level

Sensitive index daily candle chart illustrates:

  1. Tomorrows support 241.41 and resistant 245.86.
  2. Market may trade between support and resistant as mentioned in point 1.

 

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