Stock Market Weekly Forecast: Reviewing and restructuring the portfolio

The VN-Index had a volatile trading week when the opening session of the week was under strong downward pressure and quickly recovered to around 1,675 in the following session thanks to good structural force from a number of large-cap stocks in the Vingroup group, consumer, real estate, and public investment sectors.

In the following sessions, cash flow last week continued to be differentiated between sectors when selling pressure mainly came from large-cap stocks in the securities, banking, and Vingroup stocks, causing the VN-Index to continue to be under downward pressure. On the other hand, cash flow was more active in the group of small- and medium-cap stocks, especially in the groups of stocks that have not had a strong increase in recent times, such as rubber, telecommunications, and oil and gas.

Foreign investors were net sellers last week, with a total value in the first 4 trading sessions of the week reaching 3,174.5 billion VND, up 22.9% compared to the same period last week.

The market opened on November 07 with a slight decrease below the reference point under selling pressure that continued to increase in the group of stocks in the banking and securities groups. However, selling pressure increased after 30 minutes in the group of stocks in the banking, securities, and Vingroup groups, causing the general index to continue to decrease. At the end of the morning session, the general index recorded 1621.47 points, down 21.17 points compared to the reference point. Entering the afternoon session, the market continued to decline with a large selling volume focusing on stocks of Vingroup (VIC, VHM), banks, and securities, putting pressure on the general index.

In the last 30 minutes of the session, strong selling pressure increased sharply, with the focus continuing to be on the Vingroup group (VIC, VHM, VRE) and the banking group, both in red, thereby causing the general index to be under strong downward pressure. Foreign investors continued to net sell more than VND 1,295.33 billion in today's session, focusing on selling STB, HDB, and MBB.

At the end of the session, VN-Index closed at 1,599.10 points, down 43.54 points, equivalent to 2.65%. At the end of the week, VN Index decreased by 40.55 points (-2.47%) compared to last week.

The VN-Index ended the weekend session with a red candle, along with a slight decrease in liquidity, showing that the selling side is still dominating the market, along with a lack of bottom-fishing demand.

On the daily chart, the MACD and RSI indicators are continuing to trend down, so there is no sign of a reversal in the downtrend, although the index has retreated to near short-term support around the nearest old bottom, equivalent to 1,580 points (MA100 of the market). In addition, the ADX indicator and the -DI line remain above 25, showing that the correction trend has not shown any signs of stopping, somewhat reinforcing the above assessment.

On the hourly chart, the MACD and RSI indicators are continuing to trend down, so there is a high possibility that the market will continue to correct in the next trading session. However, the RSI indicator has reached the oversold zone, so the VN-Index is expected to have a technical recovery in the next session around the 1,580-1,590 zone, coinciding with the lower boundary of the Bollinger Band.

The VN-Index closed the last trading session of the week with a deep decrease of 43.54 points. This sharp decrease, accompanied by active selling pressure spreading widely across all industry groups, is a clear signal that pessimism and caution are covering the entire market. Most of the recovery efforts of the previous sessions have been erased, showing that the selling side is completely dominant in the short term.

In the context of strong market fluctuations, VCBS recommended that investors prioritize risk management, specifically continuing to closely monitor market developments to have timely reactions, while reviewing the portfolio and resolutely restructuring, especially for positions that have reached the stop-loss threshold. Preserving purchasing power and maintaining a stable mentality in the current context will help investors take better advantage of market recoveries to restructure their portfolios and seek short-term profits.