NSE Sectoral Indexes Trading Range Charts For 2016 (1)

Traders Watch 29

The benchmark index NSEASI that measures the general market performance had a mixed trend to close the year 2016 lower, due to mixed sentiments that befell the nation’s equity market resulting from confidence crisis on the part of domestic and international investors as unclear economic policies of the government kept many of them on the sidelines.
Following the recent rebound in oil prices, petroleum stocks posted their best gains since 2009 and with the highest budget of N7.3 trillion in the history of Nigeria proposed for 2017 and considering the low valuation in the market, we expect a bullish 2017 all things being equal.
The charts below are the sectorial indices trading range for the year 2016, representing sectors and industries for effective reading and analyzing of the market’s performance on sector by sector basis to guide where investors should build their tent in the New Year.
The performance indices showed that two out of the 11 indices closed the year positively. They are: the NSE Premium index and NSE Banking Index that rose 6.98% and 2.17% respectively while others were in the red.

NSE BNK DAILY CHART

NSE Banking Index (NSEBNK) rose by 2.17% over the past year to form a symmetrical triangle and bearish channel at a time and also trading above its 50 DMA. The triangle chart pattern supports continuation of trend as it almost broke out of the upper yellow resistance trend line. The strength and direction of trend is strong since ADX is above 20.
Traders should watch out for first and second resistance levels at 278.46 and 284.74 respectively, and any move down with first support level at 266.32 and second support at 262.51.
Looking at technical indicators, the NSEBNK closed below the upper band by 20.6%, while MACD has been bullish for 23 trading days. RSI is reading 64.01, which is relatively overbought. Money flow index has reversed down, indicating that funds are exiting banking stocks. RSI and CCI are signaling sell position while SO and MACD are saying buy.
nse-banking-chart
NSE Premium Index

NSE Premium Index (NSEPrem) moved 6.98% higher over the past year on a bullish sentiment to continue its uptrend move after breaking the upper trend line of the bearish channel and triangle chart pattern. The move is still strong as ADX is 20 and D1 and D2 are reading 60.09 and 17.50 respectively.
Traders should watch for uptrend in the New Year to first resistance level of 1756.31 and second resistance level of 1831.98 or reverse down as a result of January effect to touch first support level at 1660.13 and the second support level will be at 1624.33. The index is trading above its 50-Day moving average at 1699.49. The breakout of the symmetrical triangle chart pattern of the index action equally support continuation of trend.
Looking at the technical indicators, NSEPREMIUM closed below the upper band by 12.1%. MACD is still bullish, RSI is reading 73.96 is strongly at overbought region. SO, MACD and RSI indicators are signaling BUY, except for CCI signal sell. MFI is looking up to indicate that funds are entering the stocks in that subsector.
nse-premium
TO CONTINUE NEXT WEEK

Sign In

Register

Reset Password

Please enter your username or email address, you will receive a link to create a new password via email.