Three Days, Three Circuits — A Remarkable Streak
As NEPSE collapsed 105.50 points (-3.79%) on April 5, 2026, a remarkable divergence played out: Bhujung Hydropower (BJHL), Reliance Spinning Mills (RSML), Super Khudi Hydropower (SKHL), Ridge Line Energy (RLEL), and Suryakunda Hydro Electric (SKHEL) all hit upper circuits for the third consecutive trading session — April 1, April 2, and April 5. This is one of the longest consecutive-circuit streaks seen in NEPSE in recent years.
Three-Day Circuit Data
| Symbol | April 1 Close | April 2 Close | April 5 Close | 3-Day Gain |
|---|---|---|---|---|
| BJHL | Rs 700 (est.) | Rs 700 | Rs 770 | +10%+ total |
| RSML | Rs 3,241.9 | Rs 3,306.7 (est.) | Rs 3,566 | +10%+ total |
| SKHL | Rs 584.5 | Rs 584 (est.) | Rs 642.9 | +10%+ total |
| RLEL | Rs 483.1 | Rs 483 (est.) | Rs 531.4 | +10%+ total |
| SKHEL | Rs 457.6 | Rs 457 (est.) | Rs 503.3 | +10%+ total |
Why Three Consecutive Circuits?
Stocks hitting circuits for three or more consecutive days in NEPSE typically have one or more powerful drivers behind them:
- Major corporate announcement: A merger, acquisition, large bonus/rights issue, or strategic partnership that fundamentally revalues the stock
- Thin float effect: In small-cap stocks with very low public float, even modest buying demand cannot be met at the current price, pushing it to circuit daily
- Speculative momentum: Retail FOMO (fear of missing out) creates a self-reinforcing cycle — each circuit day attracts more buyers who bid the stock to circuit on the next day
- Promoter/insider activity: Large holders strategically buying or not selling, creating artificial demand imbalance
What Three Consecutive Circuits Signal
Three-day circuit streaks are both exciting and dangerous for investors. The implications:
- True breakout potential: If driven by genuine catalysts, three circuits can mark the beginning of a sustained rerating. Stocks can continue to circuit for weeks after major corporate events.
- Regulatory risk: SEBON and NEPSE both monitor unusual price movements. After 3+ consecutive circuits, stocks may be placed under surveillance, require enhanced margin, or face trading halts for investigation.
- Liquidity trap: Buyers who purchased during circuit days may be unable to sell — the stock is at circuit asking price, but sellers control whether trades execute. If the circuit streak ends abruptly, trapped buyers face sharp losses.
- Index divergence confirms speculation: These stocks hitting upper circuits while NEPSE crashes -3.79% is strong evidence of speculative activity rather than fundamental rerating.
HFIN (Hotel Forest Inn) — An Unusual Inclusion
Among the circuit stocks, HFIN (Hotel Forest Inn Limited) stands out. It is classified under the HOTELS sector — not hydropower or manufacturing like its circuit peers. Hotels are a deeply cyclical sector in Nepal, yet HFIN has been hitting consecutive upper circuits. This strongly suggests a company-specific catalyst (merger, restructuring, or ownership change) driving the move.
Investor Warning
If you are watching these stocks with interest, the risk profile is extreme:
- Buying at circuit price means paying the maximum allowed daily price
- If the circuit streak breaks, next-session buyers face a stock that may gap down 5-10%
- Without confirmed fundamental catalysts, these moves are speculative and high-risk
- Never allocate more than you can afford to lose on circuit-streak speculation
Watch List
Monitor SEBON and NEPSE announcements for any surveillance actions on BJHL, RSML, SKHL, RLEL, and SKHEL. Any regulatory action would immediately end the circuit streak and potentially trigger sharp reversals. Investors already holding these stocks should have a clear exit plan.