Nepal’s two largest parties split, including Oli’s UML

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Kathmandu, Aug 18 | In a rare political development, Nepals first and fourth largest parties in the Parliament split on Wednesday following the promulgation of an Ordinance by President Bidhya Devi Bhandari.

The Nepal government had on Tuesday recommended President Bhandari to amend the existing Political Party Act to relax the formation of new parties.

Hours after Bhandari promulgated the Ordinance, Nepal’s largest party in Parliament, Nepal Communist Party (UML), has split. The chairman of UML is outgoing Prime Minister K.P. Sharma Oli.

The fourth largest party in the House, Janata Samajbadi Party, which has 32 lawmakers in the Lower House, has also split.

Senior UML leader and former Prime Minister Madhav Kumar Nepal announced his split from the mother party and registered a new party — Nepal Communist Party UML-Socialist — on Wednesday with the Election Commision.

Oli and Nepal have been arch-rivals in the party for a long time and there was deep discord, dispute and division inside the party between them for the past two years.

Out of the 123 lawmakers, Nepal secured the support of 30 and formed a new party, which is also the part of the eongoing ruling alliance led by President of Nepali Congress, Sher Bahadur Deuba.

After registering the new party with the Election Commission, Rajendra Pandey, a senior leader of the Nepal faction, said that after Oli failed to admit his mistake for dissolving the House twice and for failing to maintain the party unity, they finally decided to split the party.

The Oli camp called it a ” black day in Nepal’s Communist movement”.

The amendment Ordinance stipulates that 20 per cent or more members of a parliamentary party and the central committee of a political party can split from their mother party.

Before the amendment, provisions of the Political Party Act required dissidents to have the support of 40 per cent of members in the parliamentary party and the central committee to split from their mother party,

The CPN-UML, which at one point boasted of two-thirds majority, has now split into two.

The Sher Bahadur Deuba led-government had recommended the promulgation of the Ordinance to President Bhandari on Tuesday, in a bid to facilitate the registration of Nepal’s party.

Similarly, the fourth largest party in the House, Janata Samajbadi Party, has also split formally.

A section of the party led by its Chairman Mahantha Thakur registered a new party with the Election Commission on Wednesday following the promulgation of the Ordinance.

The Thakur faction has a long standing dispute with another Chairman, Upendra Yadav. Thakaur has formed a new party named Janta Samajbadi Party Nepal (Democratic).

The Deuba government had introduced the Ordinance to secure majority for the government. Now, Nepal’s new party will join the Deuba government. It is not sure whether Thakur’s new party will join the new government, but it will continue to support the government, its leader Rajendra Mahato said.

The other chairman of the Janata Samajbadi Party, Upendra Yadav, is all set to join Deuba’s government.

Another key alliance partner, Nepal Communist Party (Maoist Center) is already in the government. Its chairman is Pushpa Kamal Dahal ‘Prachanda’.

Source: IANS

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Weekly Technical Share Market Outlook

Weekly Technical Share Market Outlook

The Indian market recovered with modest gain against the resilient global cues. Throughout the week, Sensex traded in a narrow range following an uneven move. Sensex ended at 54884.66 gaining 558 points or 1.03 percent while Nifty settled at 16352.45 with 86 points or 0.53 percent on a weekly basis. While Banknifty ended at 35613.30 levels with strong bounce with an upside of 3.90 percent in a week.

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INDIA VIX has cooled off during the week with 7.01 percent and has settled at 21.48 levels. Investors and traders may watch out key events such as the RBI meet in the second week as well as the US Fed meeting likely to be on 14-15 June for monthly expiry. As corporate results are likely to end soon stocks would expect less volatility in upcoming days. In Nifty stocks, HDFCLIFE gained 9.61 percent while DIVISLAB shed 18.41 percent in a week. Sectorally Nifty Finance saw the highest gains of 4.32 percent followed by the Nifty Auto with 3.26 percent. On the flip side Nifty Pharma, Energy, Realty and PSE lose more than 3 percent each on a weekly basis. However Midcap gained 0.77 percent while Smal lcap dropped by 3.42 percent.

Technically, Nifty has formed a bullish candle on the weekly chart with a long tail suggesting strong support around 15900 levels, while on the upside 16800 may act as strong resistance. Index has taken support from the previous horizontal line & closed above 21-days Simple Moving Averages that indicates further pullback rally in the near term.

Indicators such as RSI remained in the neutral zone while MACD suggest some positive cross over observed in daily time frame suggest some sign of reversal. Coming to the OI Data, on the call side the highest OI witnessed was 16500 followed by 16800 strike prices while on the put side, the highest OI was at 16000 strike price. Overall, Nifty is having support at 16000 mark while on the upside 16500 followed by 16750 may act as an immediate resistance. While Bank nifty has support around 34300 while resistance is placed at 36800 on weekly chart.

Om Mehera
Research Associates
Choices Broking

Souce: Choice India

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