Out of the numerous companies listed in the stock exchange, every new investor finds it cumbersome to sort out the best companies to invest upon. Once you have decided the company to invest upon, it is important that you give it some intrinsic value yourself that is the most appropriate price for that stock.\
This is called evaluating a stock. For this, you can look at 180 days average price, 90 days average price and 30 days average price of stocks and make your safest buy if they are near or below the 180 days average. In Bull markets, it is quite not possible to get stocks near the 180 days average price. So, we can safely invest on stocks that are near 90 days average or 30 days average.
In this video below, I have compiled the 180 day, 90 day and 30 day average prices of all the commercial banks of Nepal. Closing price averages are misleading in a sense that they are not the actual averages of total shares traded. Very few transactions might have taken place actually at the closing price everyday. So, for better reflection of the prices, I have used Weighted averages to arrange the stocks. The weighted average is the average of all the transactions that have taken place.
Watch the video below and have your say. Happy Investing.
