NGXASI: All Shares Index
The index remains above its moving average, signalling strength and sustainability on Wednesday, the first trading session of April. The sectoral performances had a significant impact on the NGXASI’s current momentum. The index closed above its moving average at 201703.55.
Volume aligned with this bullish sentiment, as it traded above its moving average. Money flow indicated liquidity recovery. RSI maintained its momentum. These indications are enough for an overall market overview, even though MACD is bearish with low momentum. How did other sectoral indices perform to start the second quarter?
Sectoral Index Performance
NGXBNK: Banking Sector Index
The banking sector maintained its support level (1859.93 bps) and encountered resistance at 1934.24 bps. The index traded above its moving average, closing at 1920.52. Currently, the index is within its resistance zone and has the potential to break its resistance level.
The NGXBNK started the index with good liquidity and momentum in the market. Volume confirmed the day’s solid bull sentiment. Finally, MACD is losing momentum for its bearish signal. Market players will expect the bull surge to continue and commence another markup phase
NGXCSMG: Consumer Goods Sector Index
The NGXCSMG’s performance aligned with the index’s support and resistance levels (5651.58 bps and 5463.29 bps). The index traded above its moving average, closing at 5564.78. It still has potential for a bull surge.
The consumer goods index commenced Q2 with a positive sentiment. This good volume was backed by a sustained market momentum. MFI and MACD recovered gradually to align with this bullish sentiment. Thus a breakout at the index’s resistance level (5651.58 bps) should confirm the beginning of a markup phase.
NGXIND: Industrial Sector Index
The industrial sector closed indecisively to signal profit-taking and investors’ sustained interest in the sector. An indecisive candlestick pattern in a trend usually signals a potential trend reversal. The index maintains its sturdiness above the moving average, closing at 8776.57.
MACD remains bearish despite the bullish volume from the index. This indication reflected both profit-taking and buyer sentiment for the index. RSI signalled sustained momentum, while MFI tilted upward in the high liquidity zone, signalling more money flow in the index.
NGXOGSE: Oil and Gas Sector Index
The oil sector traded above its moving average and closed at 4382.97 bps. The index closed indecisively as it approached its resistance zone (4430.77 bps). Investors are more risk-averse in this index due to the global crisis. Yet, the NGXOGSE still has potential.
MFI finally traded below 50, indicating low liquidity in the market. However, RSI remains flat, signalling sustained momentum. MACD’s momentum for its bearish signal reduces drastically. This sentiment prepares investors to buy into value when the index surpasses its resistance zone.
NGXINS: Insurance Sector Index
The insurance sector tested its next support level at 1195.58 and bounced upward. This index action may lead to another bull run, using historical data and placement. The index is below its moving average at 1234.25 with potential to enter its support zone.
The volume for this bullish sentiment became relatively strong. However, money flow remains flat below 50, with a reading of 22.64. RSI also became flat near its oversold region with a reading of 35.03. MACD stays bearish supported by low momentum and volume from its histogram.
Final Thoughts
The sectoral indexes are gradually recovering. This recovery phase is responsible for the NSEASI’s positive performance. Traders and investors will wait for resistance zone breakouts to place their position.
