Stock Market Daily Forecast: cash flow shifts between market sectors

The Vietnamese stock market opened yesterday with a bullish sentiment, with the VN-Index continuing to gain more than 20 points and setting a new high at 1,888.33. VIC shares, along with several other blue-chip stocks such as VCB, STB, and VNM, played a major role in driving the VN-Index.

However, increased short-term profit-taking and divergent market movements created a strong tug-of-war for the VN-Index during the session, with the VN-Index even retreating close to the reference level in the last 30 minutes of the morning session. Liquidity slowed down, indicating a more cautious general sentiment after the VN-Index had experienced several consecutive sessions of rapid increases.

The VN-Index continued its morning-day movement with continuous ups and downs in the afternoon. The VN-Index maintained its positive momentum for most of the afternoon trading session thanks to active trading in large-cap stocks, notably banking stocks, with VCB hitting the ceiling price and BID increasing by 5.13%.

However, towards the end of the session, increased selling pressure caused the VN-Index to lose momentum and close in the red. Foreign investors made net purchases totaling VND 520.97 billion, focusing on VIC, SHB, and TCX. At the close, the VN-Index closed at 1,855.56, down 6.02 points, or 0.32%.

The VN-Index closed slightly lower by 6 points due to increased profit-taking pressure in the market. On the daily chart, the RSI and CMF indicators have broken down from their highs, suggesting that the VN-Index may enter a short-term correction phase. Currently, there are no signs of negative divergence in the RSI indicator, and the MACD indicator has not yet peaked, so the VN-Index is expected to continue its upward trend after consolidating its momentum. 

On the hourly chart, the RSI indicator has formed a peak, and the MACD indicator has broken sideways, indicating that the overall momentum is slowing down and will need to be consolidated in the short term, with the nearest support level at 1,837 to regulate supply and demand after several sessions of rapid increases. Volatility will continue in the next sessions as money shifts between sectors in the market.

The VN-Index recorded its first correction session after more than a week of nearly 200-point gains from 1,690 to nearly 1,900. This is a normal development, as investors tend to take short-term profits after a strong rally. The positive aspect is that cash flow still shows signs of shifting between sectors. VCBS recommends that investors consider realizing partial profits in stocks experiencing significant selling pressure while maintaining their holdings in stocks with stable upward trends and selecting stocks with good Q4 earnings prospects to consider investing in during market fluctuations.