Stock Market Weekly Forecast: Allocating cash into stocks holding firm at support levels

The Vietnam stock market experienced significant fluctuations last week, fluctuating by /- 30 points around the 1,680 mark. Cash flow was widespread, but the leading sectors remained Vingroup’s stocks, real estate, and banking. Despite significant selling pressure from foreign investors on large-cap stocks like VNM and FPT, the VN-Index held firm at the 1680 support level for most of the week. Foreign investors net sold 3,868.5 billion VND during the trading session last week, an increase of over 934 billion VND compared to the same period the previous week.

The market opened higher in the morning session, gaining 6 points thanks to demand from Vingroup and some large-cap stocks such as GAS and BSR. Nevertheless, increasing selling pressure on VHM shares, as well as in the banking and securities sectors, caused the VN-Index to quickly narrow its gains.

During the latter half of the morning trading session, the VN-Index continued to fluctuate within a narrow range around the 1,700 support level, coupled with a significant decrease in liquidity, indicating a lack of investor enthusiasm. At the end of the morning session, the index closed at 1699.33 points, up 4.16 points from the reference point.

Entering the afternoon trading session, the VN-Index faced increased profit-taking pressure, particularly in the banking sector, causing the VN-Index to fall below 1,685 points. In the last 30 minutes and during the ATC session, profit-taking pressure intensified in several large-cap stocks such as HPG, VCB, and BID, pushing the overall index down to around 1,680 points. Foreign investors reversed course and sold heavily today, with a net selling value of VND 1,570.60 billion, primarily focusing on VHM, HPG, and MWG.

At the end of trading, the VN-Index closed at 1,684.04 points, down 10.78 points, or 0.64%. For the week, the VN Index increased by 11.24 points (0.67%) compared to the previous week.

This morning, the VN-Index rose by 0.05% to 1,684.63 points. However, many stocks still are in a downtrend.

The VN-Index fell 10 points but still held firm around 1,680 support. On the daily chart, the VN-Index held firm at 1,680 points, corresponding to the MA20 line. The DI and ADX indicators weakened simultaneously, and the Tenkan line continued to trend upwards, suggesting a high probability that the VN-Index will continue trading within the 1,680-1,750 range with alternating periods of gains and losses.

On the hourly chart, the VN-Index closely followed the Kijun support line and is about to move out of the flat red cloud area, so a rebound is still expected in the first trading session of next week.

VCBS recommends that investors maintain their portfolio allocation in stocks that are trending sideways and holding firm at support levels. Additionally, they can take advantage of market fluctuations to invest in stocks with promising Q1 earnings prospects in sectors such as retail and banking.