The
NSE All-Share Index and Market Capitalization depreciated by 0.92% to close the
week at 25,510.01 and N8.827 trillion respectively.
Similarly, all other Indices finished lower during the week with
the exception of the NSE ASeM Index that closed flat.
Market breath analyses review a negative sentiment as 13 equities
gained with 37 stocks declined while 127 equities were unchanged in the trading
week as compared to last week’s 36 gains, 22 declines and 119 stocks unchanged
respectively, the breath indicators
shows positive sentiment.
Trend
Analysis
As
expected, technical perspective had pointed that the past trading week would
see a decline in the value of the All Share Index due to inverse relationship
between the index action and volume.
Technical levels
indicates support at 24,521.80 while intermediate resistance at 26,243bps and
key resistant zone at 27,161.20 – 26,874.30 bps
Trend
indicator, Bollinger band system on the weekly timeframe showed that the index
still trends within the bearish territory and trading below EMA 20 (mid
Bollinger band) at 25.807 bps.
Volume analysis
on the offer side was strong compared to the previous week’s volume with more
than 500m volume though it remain on the bid side.
Daily
trend analysis
Looking at the lower timeframe:
· The index trading broke above the downward
trendline
·
Corrected from the upper Bollinger band
·
Currently at the Bollinger band mid-point
·
RSI retrace from the overbought level
Overall
Sentiment:
Short term: Neutral
Medium term: Neutral
Long term: Bearish
Our
Expectations:
We expect the index continue to
trade in a range as the Bollinger band is contrasting and the oscillator
indicators entering into a flat. Speculative activities are most likely going
to dominate trading activities in the coming week and more profit taking are
anticipated. Stocks from the banking and
consumer goods could be taken advantage of as it is recommended to buy into the
downward movement.
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