A rotational uptrend among stocks is returning

Many analysts said investors should only buy and conduct trading activities at corrections. Photo: Quoc Tuan

After opening with a light gain, the market shook strongly as selling pressure appeared widely. In detail, the liquidity increased strongly from average, and the market also leaned completely on sellers with much more droppers. However, the selling focused mainly on midcap and penny groups, especially speculation codes.

Meanwhile, blue-chips differentiated, and a few pillars went against the stream and gained well, which limit  ed VN-Index’s gain. The market was remarkable at the end as the cash flow started catching up again. Some groups like retail, public investment, fertilizer, petrochemicals, and banking gained well, helping VN-Index close with a "false green".

The VN-Index gained 2.65 points (0.23%), closing at 1,132.03 points. HNX-Index lost 0.53 points (-0.23%) to 231.01 points. Trading values on HOSE and HNX reached VND 20,376 and VND 2,072 billion, respectively. Foreign investors net sold VND 448.53 billion on the HSX, while net buying VND 84.13 billion on the HNX. VNM (0.79), GVR (0.6), and MWG (0.53) made the most positive impact today.

Meanwhile, VHM (-0.55), STB (-0.33), and HPG (-0.29) removed the most points from the index. 8/11 sectors gained today, with Technology being the strongest gainer (4.77%), thanks to the support of CMG (6.73%), DGW (4.39%), SGT (4.53%), and ELC (2.96%). This was followed by Healthcare (1.91%), thanks to DHG (4.28%), DBD (2.42%), and IMP (1.72%). On the contrary, Utilities (-0.49%) were the biggest losers, impacted by PGV (-1.98%), POW (-0.36%), and GEG (-2.11%).

The VN-Index is determined to have close resistance at 1,152-1,162 points. In the context that the stock market is about to enter the potentially pessimistic Q2 results announcement season and there are lurking risks in the world market, Mr. Tran Xuan Bach, analyst at BVSC, said the market's upward momentum would face many difficulties and may meet strong correction spans during the ascent. The support of the VN-Index is at 1,118–1,123 points and 1,092-1,102 points. Although the market's short-term trend remains positive, the Vn-Index is approaching resistance zones with potentially large selling pressures. Therefore, investors should only buy and conduct trading activities at corrections. Chase-buying of high-priced stocks in strong gaining sessions should be refrained from.

The VN-Index gained 2.65 points (0.23%), closing at 1,132.03 points. 

"We observe that the rotational uptrend among stock groups is returning. Consequently, investors should prioritize buying stocks that have been adjusted to create an accumulation base to anticipate the cash flow", said Mr. Bach.

VN-Index closed at the highest level since September 2022, with increased volume. Currently, the gap-up formed last week, corresponding to 1,118–1,122 points, will continue to support the index's movement. Technically, the ADX continued to move up and is now above 25 points, with the DI line above the -DI line, showing that the index is following the uptrend.

In BVSC’s view, after confirming the recent "golden" intersection, the market is establishing a medium-term uptrend with a target price around 1,200 points. The index's resistance lies at 1,150–1,160 points. The index's support is at 1,092-1,100 points and 1,118-1,122 points.