Monday, August 19, 2019 / 02:00PM / By Afrinvest Research
Market Last Week (Our Observation)
Market This Week (Our Expectations)
Weekly Stock Watch for Technical Traders
Analysis NSE ASI Breaks Another Psychological Benchmark
The NSE All Share Index declined 1.4% to print
at 26925.3 points. As has been the case recently, the Negative Directional
Movement Index (-DMI) is not only outstripping the Positive Directional
Movement Index (+DMI), it also continues to display a super strong ADX (Average
Directional Movement Index), indicating the NSEASIs reluctance to rise to
glory. This week, we expect the index to continue to wander within the negative
territory. But why are we pessimistic? All indicators strongly suggest there
are no possible triggers to herald a rebound in the near term.
Our BUY Recommendation
About the previous week... CUTIX, one of our BUY stocks, gained 4.0% W-o-W. Unfortunately, NIGERIAN BREWERIES - our top BUY - shed weight W-o-W. The silver lining? NB is closer to its oversold region and has more upside potential while topping, AGAIN , our BUY recommendations for this week.
Based on previous weeks observations, our recommendation remained unchanged. NIGERIAN BREWERIES(ADX: 32.55; MFI: 8.71; %B: 42.46, DANGCEM (ADX: 31.90; MFI: 57.88; %B: 23.48), OANDO (ADX: 26.34; MFI: 19.80; %B: -8.33), WEMABANK (ADX: 28.17; MFI: 35.70; %B: 20.01) and WAPCO (ADX: 48.93; MFI: 43.63; %B: 8.24) have strong prospects for fortune in the near term. These stocks currently hover around the oversold region with respective +DMIs bullying â€“DMIs with >25 ADX value, signifying a strong trend. Of these, our hot pick is NIGERIAN BREWERIES as it is set to create room for profit - a strong uptrend from the oversold region. Attention! Attention! Attention! The Nigerian market is currently not for the timorous.
Our SELL Recommendation
Previous weekâ€™s observations also suggest that TRANSCORP (ADX: 44.98; MFI: 56.12; %B: 47.86), MOBIL(ADX: 25.79; MFI: 43.09; %B: 42.46), STERLNBANK (ADX: 32.64; MFI: 41.23; %B: 86.74) and CADBURY(ADX: 42.91; MFI: 33.35; %B: 28.87) top our wish list for investors yearning lean pockets. As it stands, these stocks are tremendously heading for the deep with -DMIs outstripping +DMIs and stronger ADX values too (well above 25). Closest to the overbought region and with a strong ADX, TRANSCORP emerges top potential loser.
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