Restructuring portfolios for profitable stocks

In the week of October 13-17 October, VN-Index continued the upward momentum from last week and conquered the 1,790-1,800 range in the session of October 14 before moving sideways and adjusting in the remaining sessions of the week. Large-cap stocks in the Vingroup and banking groups, after the hot growth and bringing the market to high points, gradually slowed down and reversed to decrease points this week, thereby putting pressure on the general index. Cash flow circulated in the market with exciting developments in the real estate, retail, public investment-construction groups. Foreign investors remained in the main net selling trend during the week, focusing on selling VSH, FPT, and VRE.

In the last session of the previous week, VN-Index opened with a gap up to 1,773.17, which was also the highest level the index reached during the day. After that, the VN-Index gradually decreased to the 1,760 mark and fluctuated around this mark for most of the trading time before continuing to slide to near the 1,750 mark at the end of the morning session. Pressure on the index was the adjustment in the large-cap group, typically in stocks of Vingroup and banking groups.

In the afternoon session, supply continued to dominate the market with 236 red codes and 96 green codes. The stocks like VIC, VHM, CTG, VPB, VCB widened the decrease range, in which VHM had a moment of touching the floor price, along with the sudden fluctuations in MSN shares, causing the VN Index to slide to the 1,730 mark.

At the end of the session, the VN-Index closed at 1,731.19, down 35.66 points, equivalent to 2.02%. At the end of the week, the VN-Index decreased by 16.36 points (-0.94%) compared to the previous week.

The VN-Index ended the weekend session with a black Marubozu candle and decreased by 36 points due to the correction pressure in the pillar stocks, especially the Vingroup group.

On the daily chart, the VN-Index suddenly shook strongly from the 1,770 zone and slid down to the 1,730 zone. The RSI indicator pointed down from the high, and the MACD indicator showed a peak formation signal, indicating that the general momentum is weakening in the short term. It crossed the Kijun line of the Ichimoku cloud, so the possibility of shaking and adjustment will continue next week, with the nearest support level around the 1,700-1,710 zone.

On the hourly chart, the VN-Index closely followed the lower border of the Bollinger Band pointing down, and the RSI and MACD indicators went down to the low zone, further reinforcing the current market weakness. At the same time, the CMF indicator cut below the 0 mark, showing the dominance of supply, accordingly, shaking and adjustment will still be the main movement in the next session.

After efforts to increase points to the 1,790-1,800 zone in the first two sessions of the week, the momentum of VN-Index gradually weakened and was under pressure to adjust to the 1,730 zone in the last session of the week due to the reversal pressure in Vingroup and banking groups. However, the downward adjustment in the large caps is not in complete agreement with the groups of mid- and small-cap stocks when cash flow shows signs of looking for stocks that have formed a solid price base and almost moved sideways during the period of hot market growth in the past two weeks.

Accordingly, VCBS recommended investors restructure their portfolios towards realizing profits for stocks that have reached short-term targets and show signs of reversing down. In addition, investors should look for new investment opportunities in stocks that attract cash flow participation after a long accumulation period and wait for exploratory disbursements when the market shows signs of recovery and balance.