Vietnam Insight

▶ The market continued its upward trend in Tuesday's trading session with liquidity remaining flat. The index reached a new peak when it stayed above the 1,600 level. Foreign investors continued to net sell today, although with a reasonable value.

▶ At the end of the trading session, the VN-Index increased by 11.36 points (+0.71%), reaching 1,608.22 points; the HNX-Index increased by 0.01 points, reaching 276.47 points. The liquidity of the whole market was sideways at VND 50.23 trillion, equivalent to about 1.9 billion shares traded. Foreign investors net sold VND 691 billion, mainly concentrated in FPT, VHM and SSI. On the other hand, VPB, STB and POW were the stocks with the strongest net buying.

▶ Technical perspective: VN-Index continued to record an increasing session and officially surpassed the 1,600 mark. Liquidity around the average level showed the cautious psychology of the buying force when the index conquered a new point, but there was no strong profit-taking action from the supply side. The index closely followed the support line on the trend channel and the MA10 and MA20 lines sloped up, showing that the market maintained an uptrend. If VN-Index increased the spread with the increasing consensus of the transaction value, the index is expected to move towards the 1,600-1,700 range. Investors need to manage risks when VN-Index moves in the opposite direction and breaks the support of the trend channel at 1,510 points with large liquidity.

- In the positive case: The market is likely to experience a correction before continuing to increase points towards 1,600-1,700 points. Adjustments around 1,510 - 1,550 points will be a good opportunity for investors to increase their stock positions.

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

Strategy: In technical adjustment sessions around 1,510 - 1,550 points, investors can consider partial disbursement in stocks with good business results and benefit from market upgrade expectations. In case institutional cash flow does not reappear in the 1,450 - 1,510 point area, investors can reduce the proportion of stocks to manage risks.