Limit chasing purchases and prioritize risk management
The market is going through a challenging period as red continues to dominate and cash flow remains cautious. Increased selling pressure on pillar stocks has caused many recovery efforts to fail, reflecting investors’ cautiousness in the face of short-term fluctuations.
However, the current correction can also be seen as a necessary “gain of momentum” after the previous hot streak, helping the market consolidate the new price level.
In the context of unclear trends, BETA Securities Company recommends that investors should maintain a safe stock ratio, limit chasing purchases and prioritize risk management.
Disbursement should only be made when the market shows clear signs of balance, or when strong support zones are firmly tested.
According to Vietnam Construction Securities Company, VN-Index is still in the correction channel to retest the support level around 1,630 – 1,640 points, so low liquidity in the slight correction sessions to the support zone is not a worrying signal.
Investors should continue to prioritize open positions with a small proportion when VN-Index retests the support level and gradually increase the proportion when the open positions are profitable.
In addition, AseanSC experts believe that VN-Index may continue to fluctuate when foreign net selling pressure remains, while cash flow remains cautious after the price push session on November 4. The index’s near support zone is the 1,630+/- threshold while the near resistance lies around the 1,650-1,660 point area. Investors should only hold stocks that are maintaining a short-term uptrend or holding good prices in the current market fluctuations, along with safe capital prices.
Investors with a high cash ratio can disburse in parts, prioritizing stocks that are correcting in an uptrend or stocks that record RSI moving deep into the oversold zone.
Major pillars “run out of steam”, VN-Index turns to decrease
The market on November 6 continued to witness a volatile trading session as cash flow remained cautious. In the morning session, red covered most of the board as demand showed weakness in the face of increased selling pressure. Although in the afternoon session, VN-Index had a time when it narrowed its decline thanks to a glimmer of bottom-fishing demand, the recovery momentum was quickly broken when selling pressure increased sharply towards the end of the session. In the trading session on November 6, VN-Index closed at 1,642.64, down 12.25 points (-0.74%).
The market continued to maintain the re-accumulation trend with the support level around 1,630 – 1,640 points with matched liquidity lower by -45.6% compared to the average level of 20 sessions. Accumulated to the end of the trading session, liquidity on the HSX floor reached 585 million shares (-11.73%), equivalent to a value of VND 17,903 billion (-11.42%).
VN-Index ended the session with the selling side dominating when the opening tilted to red with 16/21 industry groups closing down. Plastics (2.82%), Textiles (1.19%) and Aviation (0.56%) were the three industry groups with the strongest increase. On the contrary, Oil and Gas (-1.47%), Securities (-1.45%) and Fertilizer (-1.32%) were the three industry groups under the strongest correction pressure in the session on November 6.
Foreign investors continued to maintain a net selling trajectory with a closing value of -1,062 billion VND. MWG 182 billion VND, VIC 72 billion VND and VNM 31 billion VND were the three stocks with the most net buying. On the other hand, STB -180 billion VND, VPB -102 billion VND, HPG -89 billion VND were the three stocks with the strongest net selling pressure.
Leave a Reply