Vietnam Insight

▶ The market opened the trading session with a gap of 14.33 points after the recovery of the previous trading session. The index continued to be under continuous profit-taking pressure in today's session and traded below the reference level, however, the selling pressure has decreased. Despite strong net selling pressure from foreign investors, the index only adjusted slightly and closed slightly below the reference level. 

▶ At the end of the trading session, the VN-Index decreased by 5.11 points (-0.34%), to 1,502.52 points; the HNX-Index increased by 4.83 points (+1.85%), reaching 266.34 points. The liquidity of the whole market remained high above the 20-session average, reaching VND 49.0 trillion, equivalent to about 2.002 million shares traded. Foreign investors returned to net selling strongly with VND 1,930 billion in the session, mostly concentrated in CTG, VPB and FPT. On the other hand, VIC, HAH and NVL were the stocks that foreign investors bought the most.

▶ Technical perspective: After a slight recovery session, the market could not maintain its upward momentum when foreign investors returned to strong net selling. The movement of VN-Index is showing that this is a technical recovery session. If there is no particularly positive information, in the short term, VN-Index will continue to face correction pressure. MACD has signaled a cut down in the last two sessions. In the medium term, we believe that VN-Index will continue its upward trend. The support zone for this trend will be around 1,400 points and the resistance zone will be the peak of 1,550-1,600 points.

In the positive case: The market is likely to face corrections before continuing to increase points towards 1,600-1,700 points. Adjustments to around 1,400-1,450 will be a good opportunity for investors to increase their positions.

In the negative case: Overwhelming selling pressure causes VN-Index to lose EMA20 and EMA50 points, along with unfavorable economic information that could push VN-Index back to a sideways state within a wide range.

Strategy: In technical correction sessions around 1,400-1,450 points, investors can consider partial disbursement in stocks with good business results and benefiting from market upgrade expectations. In case institutional cash flow does not reappear in the 1,400-1,450 point area, investors can reduce the proportion of stocks to manage risks.