Vietnam Insight

▶ The index opened with a slight gap up 1.38 points after the previous day's increase to regain the MA 20 mark. However, selling pressure still showed its dominance when it continuously weighed on the index, pushing it below the reference level throughout the afternoon session. Under the continuous selling pressure of foreign investors, the index adjusted to the MA 20 support level. Market liquidity improved in today's session.

▶ At the end of the trading session, the VN-Index decreased by 4.78 points (-0.29%), to 1,661.70 points; the HNX-Index decreased by 1.99 points (-0.72%), to 273.16 points. Market liquidity improved to the same level as the 20-session average of VND 35.6 trillion, equivalent to 1,306 million shares traded. Foreign investors continued their strong net selling streak, reaching VND1,268 billion, with the largest net selling value belonging to KDH, HPG and FPT. On the contrary, CII, SHB and TCB were the typical net buying stocks.

▶ Technical perspective: VN-Index continued to fluctuate within a narrow range. The upward momentum of VIC stocks continued to maintain the index for the market. In general, the market continues to be in a sideways state around 1,600-1,700 points to wait for the official upgrade information on October 7. VN-Index is currently trading above MA50 and RSI is at a neutral level, around 50.

In the positive case: Rumors about the market upgrade can help attract new cash flow and move towards 1,750-1,800 points. Cash flow increases in the upward direction, large amplitude and widespread green color will strengthen the uptrend of the market.

In the negative case: The market faces profit-taking pressure when the upgrade news is announced, the amplitude of the decreasing sessions is large and breaks the short-term support zone of 1,600 points. If this level is broken, the market is likely to retest the zone of 1,500-1,550 points (this is also the old peak of the market in 2022).

Strategy: Prioritize the holding strategy and be ready to sell when the target is reached. For short-term traders, if the market corrects to around 1,600 points and rebounds, it is possible to consider disbursing a low proportion. If the market returns to the 1,540 point area, there will be a clearer buying opportunity for medium-term positions. Investors can disburse more strongly, focusing on groups of stocks with many driving forces such as benefiting from upgrading, strong business growth results; or lower valuation levels compared to the general market.