Vietnam Insight

▶ Vietnamese stock market ended on a flat note as investors cautiously await the upcoming US inflation data. The VN-Index quite muted as the market lack of fresh catalyst to bolster the further recovery momentum.

▶ At the end of the trading session, VN-Index closed at 1,230 – unchanged compared to yesterday while HNX closed at 230 points, slightly downed by 0.25%. The trading value was downed to VND13,081 billion, a cautious sentiment signal. Meanwhile, foreign investors accelerated its third consecutive net buying streak with the value at VND316 billion on the HOSE. In particular, top net bought tickers by foreign investors were HDB (+VND380 billion), VNM (+VND151 billion) and FPT (+VND76 billion).

▶ Technical perspective: The market is under selling pressure around 1,230 points. Although the VN-Index closed with a hammer candle, the market has not changed its trend compared to yesterday's session. The index needs to cross above the resistance level of 1,240 with an increase in the volume to confirm the recovery momentum. Before heading to the 1,240 - 1,250 zone, we expect the market will move sideway as money flow spread widely among industry groups. The current support and resistance zones are 1,200 and 1,250, respectively.

Strategy: Investors continue to observe the market's movement and wait for the market to establish a new equilibrium price zone. Investors should only participate with a low weighted as the 1,250 zone is a relatively strong resistance zone.