Introduction: Why Floor Sheets Matter in NEPSE

Nepal’s stock market (NEPSE) is retail-driven, speculative, and liquidity-sensitive. While rumors and price charts dominate discussions, the floor sheet is where the real story lies.

A floor sheet is a daily record of all trades executed in NEPSE — showing which brokers bought and sold, at what price, and in what volume. For disciplined investors, floor sheets are a goldmine of data that reveal market momentum, broker concentration, and even manipulation attempts.

In this guide, we break down how to read and use NEPSE floor sheets effectively.

1. What Is a Floor Sheet?

A floor sheet is the official trading log published daily by NEPSE. It lists every transaction for every stock on that trading day.

It includes:

Company Symbol & Name
Buy and Sell Broker Codes
Traded Quantity
Traded Price
Turnover Value

For advanced users, aggregated data from floor sheets provides insights into market trends, broker behavior, and unusual volumes.

2. Key Columns in a NEPSE Floor Sheet

a) Symbol & Company Name

Identifies the stock being traded — e.g., NABIL (Nabil Bank), NHPC (Nepal Hydro Developers).

b) Quantity

Number of shares exchanged in a transaction. Large spikes in quantity often signal institutional activity or manipulation.

c) Rate (Price)

The price at which the transaction occurred. Comparing across trades helps track intraday momentum.

d) Turnover

The total value of the trade (Quantity × Price).

e) Buyer Broker & Seller Broker Codes

Unique identifiers for the brokers executing the trade. Broker concentration can be a red flag if 1–2 brokers dominate activity.

Investor Tip: Always note when the same broker appears frequently on both buy and sell sides — it could indicate circular trading.

3. How to Analyze Floor Sheets

a) Spotting Unusual Volume

Compare traded volume with average daily volume.
If volume is 3–5x higher, something unusual is happening — either accumulation (smart money entering) or distribution (exit before a fall).

b) Detecting Broker Concentration

If one broker executes more than 40–50% of trades in a stock, caution is required.
High broker concentration often signals pump-and-dump activity.

c) Price–Volume Analysis

Rising prices + rising volume → bullish trend.
Rising prices + falling volume → weak rally.
Falling prices + rising volume → strong sell-off.

d) Tracking Liquidity

Highly traded stocks are easier to enter/exit.
Thinly traded stocks are more prone to manipulation.

4. Practical Example: Reading a Floor Sheet

Imagine a NEPSE floor sheet shows the following for XYZ Hydro:

Symbol	Quantity	Rate	Turnover	Buyer Broker	Seller Broker
XYZ	5,000	400	2,000,000	17	32
XYZ	7,500	402	3,015,000	17	34
XYZ	10,000	405	4,050,000	17	41

Observations:

Broker 17 is repeatedly the buyer.
Volume is concentrated in a single broker → possible accumulation.
Price rising with volume → bullish momentum.

Investor Action:
If fundamentals are strong, this may be smart money entering. If fundamentals are weak, it could be a manipulation attempt.

5. How Floor Sheets Connect with Investor Strategies

Short-Term Traders: Use floor sheets to spot momentum and volume breakouts.
Long-Term Investors: Use floor sheets to confirm if accumulation is happening in undervalued stocks.
Risk Managers: Use broker concentration data to avoid manipulated trades.

Floor sheets are not just for day traders — they are a risk management tool for all investors.

6. Common Red Flags in Floor Sheets

⚠️ Same Broker on Buy and Sell Sides: Can indicate circular trading.
⚠️ Unusual Volume with No News: Suggests insider accumulation or speculative push.
⚠️ Sudden Price Spikes in Illiquid Stocks: Classic pump-and-dump setup.
⚠️ Low Number of Active Brokers: Limited interest — high risk of illiquidity.

7. How to Combine Floor Sheets with Other Tools

With Stock Screeners: Use P/E, P/B, and dividend filters to shortlist stocks, then check floor sheets for accumulation.
With Sector Trends: Confirm if volume spikes are sector-wide or isolated to one stock.
With Broker Data Analytics (Nepalytix): Identify broker concentration patterns over multiple days.

This holistic approach prevents investors from being blindsided.

8. Limitations of Floor Sheets

Data Overload: Thousands of daily trades can overwhelm beginners.
No Intraday Charts: Floor sheets alone can’t show real-time momentum.
Need for Context: Without sector or valuation analysis, floor sheet data can mislead.

Still, for disciplined investors, floor sheets are an essential transparency tool.

Conclusion: Floor Sheets = Transparency + Strategy

In NEPSE, rumors may start rallies, but floor sheets reveal the truth. By tracking volumes, prices, and broker activity, investors can:

Spot unusual accumulation or distribution.
Detect broker-driven manipulation.
Confirm sector momentum.
Manage liquidity risk.

Bottom line: Don’t ignore floor sheets. They are not just numbers — they are the heartbeat of NEPSE. Smart investors use them daily to separate hype from reality.