Stock Market Daily Forecast: Prioritizing risk control

In yesterday’s session, the Vietnam stock market opened 2 points higher thanks to renewed demand in banking and steel stocks. However, the gains quickly narrowed as selling pressure increased on Vingroup stocks, causing the VN-Index to quickly fall below 1,730 points.

The highlight of yesterday morning's session was strong demand from some individual stocks such as POW (3.33%) and HDB (2.38%). Liquidity remained low, with a balance between declining and rising stocks, indicating market divergence and investor hesitation. At the close of trading, the general index recorded 1,725.06 points, down 22.11 points from the reference point.

Entering the afternoon trading session, strong selling pressure continued from large-cap stocks such as Vingroup, causing the VN-Index to further widen its decline. Mid-afternoon, strong buying pressure returned to the banking and securities sectors with MBB (1.82%) and SSI (1.74%). Red continued to dominate today's trading session with 188 declining stocks and 121 rising stocks.

Foreign investors continued to heavily net sell today with a total value of VND 376.75 billion, focusing on selling STB, VIC, and MSN.

At the close of the session, the VN-Index closed at 1718.98 points, down 28.19 points, equivalent to 1.61%.

The VN-Index closed yesterday's trading session with a red marubozu candle, falling more than 28.18 points under strong selling pressure on large-cap stocks.

On the daily chart, the RSI indicator is slightly downward, reflecting a high probability of market volatility in the coming sessions. However, the MACD histogram is still positive, so the VN-Index is likely to experience periods of consolidation and volatility to test supply and demand around the nearest support level, the MA20 line, equivalent to the 1,680-1,700 range.

On the hourly chart, both the RSI and MACD indicators continue to trend downwards, showing that the correction pressure is ongoing and shows no sign of stopping. Therefore, there is a high probability that consolidation and volatility will continue in the next session, with the nearest support level around 1,700 points (Fibo. 0.618%). 

The VN-Index closed yesterday’s trading session down sharply by 28.19 points. This sharp decline was largely due to strong selling pressure from large caps such as VIC (contributing over 22 points). However, there were not many changes in other market sectors, indicating that selling pressure did not occur in many sectors.

In the context of a volatile market, VCBS recommends that investors prioritize risk control, specifically by closely monitoring market developments to react promptly, reviewing portfolios, and resolutely restructuring, especially for positions that have reached stop-loss levels.

Along with preserving buying power, investors can also identify stocks that have bottomed out before the VN-Index and are in a "rejecting further decline" state, ready to invest and take advantage of any market rebound for short-term trading. Some notable market sectors include banking, securities, and steel.