December 16, 2019 /12:05 PM / By Afrinvest Research /
Header Image Credit: Afrinvest
Market Last Week (Our Observations)
Market This Week (Our Expectations)
Weekly Stock Watch for Technical Traders
Market Analysis... Domestic Equities Market Extends Losses
Last week, the local bourse closed on a negative note, extending previous week losses as the NSE All-Share Index fell 1.2% w/w to close at 26,536.21 points. However, the negative Directional Movement Index (-DMI) outperforms the positive Directional Movement Index (+DMI) and maintained a strong ADX (Average Directional Movement Index), indicating a possibility that the NSE-ASI may shed gains this week.
Our BUY Recommendation
Observations from last week revealed that WEMABANK (ADX: 28.17; MFI: 11.38; %B: 24.42), OANDO (ADX: 26.34; MFI: 12.69; %B: 30.46), DANGCEM (ADX: 31.90; MFI: 13.62; %B: 15.34), WAPCO (ADX:48.93; MFI: 18.40; %B: 69.43), CUTIX (ADX: 26.76; MFI: 56.13; %B: 9.05) all have prospects for gains this week. These tickers currently hover around the oversold region with their +DMI outperforming -DMI with >25 ADX values, indicating strong trend. However, buyer's discretion is advised!
Our SELL Recommendation
Our observation also suggests that GUINNESS (ADX: 45.43; MFI: 95.83; %B: 47.51), SEPLAT (ADX: 34.54; MFI: 94.98; %B: -), STERLING (ADX: 32.64; MFI: 94.29; %B: 46.25), and MOBIL (ADX: 25.79; MFI:86.39; %B: -32.92) are the tickers most likely to record losses. These stocks are on the downtrend with -DMI outstripping +DMI and strong ADX values (>25). Our potential top loser, which is closest to the overbought region with a high ADX is GUINNESS.