Market commentary on July 31: Risks are still potential

3 min read
Securities company Positive Neutral Negative

Reduce points

(Bao Viet Securities Company – BVSC)

The market is forecasted to have a downward movement in the weekend. VN-Index is still fluctuating in the upper resistance zone by the resistance zone of 810-820 points and the lower one is supported by the support around 780 points. The situation and control of Covid-19, together with the second quarter business results, will be the main factors influencing the market movements in the current period. In addition, the activity of restructuring the portfolio of reference funds based on the VN30, VNDiamond, VNFin Lead indexes could cause the market and the component stocks of the above index baskets to fluctuate sharply in the weekend session.

Investors should maintain the proportion of the portfolio at less than 25% of the stock. Investors who are holding a high proportion of stocks can take advantage of the market rally to sell to reduce the proportion of the portfolio to a safe level. We may consider to open a low T + trading position at the support area of 780 ± 5 points, prioritizing the available positions in the portfolio.

Decreased points back

(Saigon-Hanoi Securities Company – SHS)

It is forecast that, in the last trading session of July 31, VN-Index may drop back to the nearest support level around 800 points (fibonacci retracement 38.2%). Investors who disburse around 800 points might consider buying a part of portfolio if the market corrects to the support level of 775 points (fibonacci retracement 50%) in the next session.

Risks are still hidden

(Rong Viet Securities Company – VDSC)

VN-Index successfully tested the support level of 780 points in the previous session so the technical recovery is still ongoing. However, it should be noted that the general trend of the market has been negative so risks are still potential. Therefore, investors should still be cautious and can rely on the current technical recovery to restructure the portfolio in the direction of reducing risk.

Increase and decrease above 780 threshold

(MB Securities Company – MBS)

The market is in an increasing / decreasing span above 780 points, if the market sees this as a support level, the liquidity will also decrease because investors reduce selling while buyers are not in a hurry to chase as happened out on the last Tuesday session. Investors should still be cautious when the market situation is still affected by the return of the new wave of covid-19 in recent days. Besides, continue to prioritize risk management, not price averaging, bringing the proportion to the balance or low.

Still in strong and unpredictable fluctuations

(BIDV Securities Company – BSC)

The market liquidity also weakened sharply compared to the previous session, the market width was positive and the market amplitude was reflecting cautious trading signals in the market. According to BSC’s assessment, the VN-Index is still in a volatile and unpredictable area, so it is necessary to monitor the movements of the Covid-19 epidemic in the coming sessions.

Keep going sideways

(Yuanta Vietnam Securities Company – YSVN)

YSVN believes that VN-Index may continue moving sideways around 800 points in the next session. At the same time, liquidity may improve as ETFs carry out portfolio restructuring in VN30 stocks. The short-term sentiment has improved but the risks are still high and signs of bottoming have not yet formed.

Lack of an important supporting factor is liquidity

(Mirae Asset Vietnam Securities Company – MASVN)

The recovery of VN-Index is lacking an important support factor which is liquidity. The matching order was just over 2,500 billion dong on HoSE today recorded a new low from June 2020 until now when the market started dropping. The fast cash flow created a big risk for the short-term movement of VN-Index. The short-term technical score is currently -4 (negative).

Investors should only consider the statements of securities companies as a reference source. Securities companies all recommend disclaiming liability for these statements.