Can VN-Index stand with profit-taking pressure?

3 min read

In the last session of the week, the stock market started with green color, but the rally met with obstacles, the market was cautious in the afternoon session. At the end of the session, the VN-Index only increased by 2.57 points (equivalent to 0.22%), closing at 1,166.78 points. The HNX-Index slightly decreased 0.16 points (or 0.07%), closing at 240.12 points.

The VN30-Index also had a cautious move in the afternoon session and rose slightly by 0.46%, with 17 gainers and 10 losers. Positive effects on the index were NVL (+ 4.1%), FPT (+ 2%), MSN (+ 2%), VJC (+ 2.1%), MWG (+ 1.8%) .. On the other side, there were 6 stocks with a drop of over 1%, namely BID (-2.7%), SSI (-2.3%), VNM (-1.5%), HPG (-1, 2%), PLX (-1.1%) and GAS (-1%).

Small and medium stocks had a large differentiation. Outstanding were some stocks that hit the ceiling price such as BCM (+ 7%), DRC (+ 7%), DXG (+ 7%), VGC (+ 7%), KBC (+6.9%) … But there were also some codes that dropped sharply like TSC (-7%), TTB (-6.9%), DCL (-6.9%), FIT (-6.9%), DRH (-6.7 %) …

Foreigners continued to be net sellers on HoSE with the value of 50.4 billion. The most were HPG (-132.4 billion), followed by VNM (-107.4 billion), CTG (-92.7 billion), VND (-47.5 billion), VRE (-43.5 billion). … On the net buying side, notably NVL (+181.9 billion), followed by FUESSVFL (+92.1 billion), E1VFVN30 (+56.1 billion), MSN (+48.7 billion), FUEVFVND (+37.6 billion) …

According to the forecast of Rong Viet Securities Company (VDSC), the market will encounter difficulties and strong shaking in the first trading session of the week. If the cash flow still supports and keeps the market stable, the recent negative signals will gradually cool down.

“Therefore, investors should slow down and observe the transactions. For stocks that have hot rise and the selling pressure is still large, they should take profits to minimize risks for the portfolio”, VDSC’s experts recommended. recommendation.

From the view of technical analysis, the Viet Capital Securities Company (VCSC) said that the short-term technical signal of the VN-Index, the VN30 remains at Neutral with the MA5 support at 1,155 points and 1,140 points. Meanwhile, the signals of HNX-Index, VNMidcap and VNSmallcap are at Positive level.

VCSC forecasts that in the first trading session of the week, the market will continue to shake and there may appear bearish corrections for the indices to re-test their short-term supports. The VN-Index may test the MA5 support at 1,155 points since many bottom-catching stocks have given attractive returns after T + 3.

If the demand at low price is strong enough to absorb these profit-taking stocks, VCSC expects that the market will gradually recover at the end of the day.

In the scenario that the VN-Index still closes above the MA5 with a hammer reversal candle or the VN-Index closes above the 1,175 point level of the MA10, the market might rise in the next few sessions. This test the old peak and the mid-term resistance at 1,200-1,210 points.

Sharing the same opinion with VDSC and VCSC, Bao Viet Securities Company (BVSC) also believes that the market will suffer from shaking pressure at the beginning of the week. However, BVSC emphasized the possibility that the market will recover and rise towards the end of the week.

“The VN-Index is likely to move to challenge the old peak around 1,200 points in the short term. However, the upturn momentum of the market will probably slow down and mix corrections in the process. Stock groups will have a clearer differentiation according to the business results of the fourth quarter of 2020 of listed companies, in addition, portfolio restructuring activities of investment funds by ministries VN30, VNFINLEAD… will create a clearer impact on market movements in the last week of January. This activity will also cause the constituent stocks of the index basket to fluctuate, “said BVSC expert.

Source: vietnamfinance.vn – Translated by fintel.vn