The unconfirmed attempts to increase points ended the short-term correction when the VN-Index could not regain the resistance zone of 1,270 points, due to hesitation and caution in investors' psychology.
Yesterday's decrease (November 4) along with the increased matched volume (+3%) compared to the 20-session average is showing quite negative signs.
However, the expected support level of 1,230 points is near and will likely be tested in the coming sessions.
Along with the negative general market developments, foreign investors net sold nearly 700 billion VND in the session on November 4, nearly 2.5 times higher than the previous session, with the focus on selling large stocks.
Cash flow in the coming time is considered quite weak when it is "divided" among other investment channels that are considered more positive, such as real estate and gold.
That is for individual investors; for organizations, the pressure of bond debt and weak market demand continues to be a concern in the final months of the year.
According to many experts, if the supply force this week is strengthened and the index does not "collapse" the support price level of 1,240-1,260 points, the end of the short-term correction will be closer, creating an opportunity for cash flow that is on the sidelines to enter the market at attractive discounted prices for groups of stocks that have both good fundamentals and strong growth momentum.
The bright spot of the market is the improved cash flow across all stock groups from large to mid- and small-cap. In particular, the return of large-cap stocks, especially banking stocks, plays a supporting role for the general index, in the context of the market receiving positive business results in the third quarter of 2024.
However, the recovery status of stock groups has strong differentiation and the indicators mainly increased from low base levels. Therefore, the shaking situation is still likely to continue.
But with the movement of indicators at such low levels, if the market does “shake”, it is likely to quickly stabilize. Therefore, corrections are considered an opportunity to accumulate new positions, instead of panic selling and exiting the market.
In the short term, the risk of a decline is still likely to continue as the trend force is still weak. However, the main uptrend formed since November 2022 is still maintained, and it is expected that the 1,244 point and 1,228 point levels will be new support levels to help the index balance.
Investors should improve trend risk management and only disburse when there are clear signals of the balancing process and signs of confirming the recovery trend appear along with trading volume.
