After having a strong gaining session and surpassing the psychological threshold of 1,800 points, the upward momentum continued to be maintained in today's trading session (August 27). In which, large Vingroup stocks and the heat of TCB stock are the support for the indices.
At the end of the trading session, VN-Index closed at nearly 1,832 points, up more than 10 points compared to yesterday. This is the 6th consecutive gaining session of the market.
In the context that the market is only 1 trading session away from entering the long holiday, it has also made investor sentiment more cautious.Market liquidity decreased by about 20% compared to yesterday's session to nearly 16,000 billion VND.Meanwhile, foreign investors returned to net buying of about 210 billion VND in today's trading session.TCB is the most attractive code for foreign investors with a net buying value of more than 444 billion VND, followed by HPG and VPB.
On the HOSE exchange, 187 declining stocks were recorded, more than 116 increasing stocks.This caused the stock market to fall into a state of "green shell, red heart".The general index improved mainly thanks to pillar stocks.The most prominent today is VIC when this code contributed more than 10 points - almost equivalent to the increase of VN-Index.Vingroup shares today increased by 2.6% to 236,000 VND/share, the highest liquidity in the market with nearly 1,988 billion VND.
VN-Index has recovered more than 100 points since mid-August, successively regaining many important technical thresholds. The question that many investors are interested in is whether the market has really bottomed out and is ready to enter a new wave of increases.
Many viewpoints believe that the high probability VN-Index has successfully created a short-term bottom. The index has recovered more than 100 points since the beginning of August, and has simultaneously regained important moving averages such as MA20, MA50 and MA200.
Another positive sign is the improvement in liquidity. Matched order trading volume in recovery sessions at times exceeded the 20-session average, showing that large demand is gradually returning to the market.
However, the noteworthy point is that VN-Index recovered more strongly than 100 points, the market breadth has not yet improved commensurate with the index's upward momentum.The market breadth has not improved commensurate with the index's upward momentum, while the upward momentum still depends significantly on some large-cap stocks.This shows that the market still needs more time to test demand.
If VN-Index continues to maintain the support zone of 1,780-1,800 points, while liquidity is improved and cash flow has a better spillover, the index may head towards the 1,850 point zone in the near future.To consolidate the scenario of forming a new wave of increase, the market needs to witness a clearer improvement in breadth, with the number of stocks increasing in price prevailing in many consecutive sessions.Cash flow also needs to spread to many industry groups instead of just focusing on some pillar stocks.
In addition, liquidity needs to be maintained above the 20-session average, while more and more stocks are surpassing the accumulation base and maintaining a positive trend on short-term MAs.These will be important signals showing that cash flow is returning more sustainably.
In the opposite direction, the risk of a technical uptrend has not been completely eliminated.If VN-Index continues to rise mainly thanks to the pulling power of a few large-cap stocks while most stocks do not have corresponding improvements, the upward momentum will hardly have a solid foundation.In particular, the decline in liquidity when the index approaches resistance zones may also be a signal that demand is not strong enough.At that time, the "bull trap" risk still needs to be considered by investors.
In that context, risk management still needs to be put first. Instead of disbursing the entire portfolio according to FOMO sentiment when the market increases, investors should maintain an appropriate ratio, choose fundamentally sound stocks and wait for corrections to have a safer buying point.
