Monday, November 04, 2019
/12:50 PM / By Afrinvest Research / Header Image Credit: Afrinvest
Market Last Week (Our Observation)
Market This Week (Our Expectations)
Weekly Stock Watch for Technical Traders
Market Analysis... Domestic Bourse Sustains Bearish Run
Last week, the market closed on a negative note despite gains on 3 of the 5 trading days. As a result, the NSE All-Share Index fell 0.2% W-o-W to settle at 26,355.35 points. Again, the negative Directional Movement Index (-DMI) outperforms the positive Directional Movement Index (+DMI) and continues to display a strong ADX (Average Directional Movement Index), indicating the NSE-ASI's reluctance to rise to prominence. Next week, we expect a further decline in the index. Our pessimism is due to the absence of triggers to spur a rebound in the near term.
Our BUY Recommendation
From our recommendation in the previous week, only DANGCEM (+2.4%) gained.
Our observation from last week revealed that CUTIX (ADX: 26.76; MFI: 36.75; %B: 53.01), WAPCO (ADX: 48.93; MFI: 37.04; %B: 28.88), OANDO (ADX: 26.34; MFI: 39.91; %B: 44.32), DANGCEM (ADX: 31.90; MFI: 66.94; %B: 92.18) and WEMABANK (ADX: 28.17; MFI: 72.51; %B: 45.19) have prospects for gains this week. These tickers currently hover around the oversold region with their +DMI outperforming -DMI with >25 ADX value, signifying a strong trend. However, buyer's discretion is advised!
Our SELL Recommendation
Our observation from last week also suggests that NESTLE (ADX: 37.57; MFI: 93.95; %B: -32.92), STANBIC (ADX: 41.06; MFI: 93.27; %B: -19.70), UCAP (ADX: 38.56; MFI: 87.73; %B: 38.50), and PRESCO (ADX: 77.32; MFI: 74.24; %B: 132.92) are the tickers most likely to record losses. These stocks are on the downtrend with â€“DMI outstripping +DMI and strong ADX values (>25). Our potential top loser, which is closest to the overbought region with a high ADX is NESTLE.
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