The stock market last week was negative when selling pressure increased sharply right from the first session of the week. VN-Index quickly lost the psychological milestone of 1,800 points and at one point fell below the MA200 line due to widespread loss-cutting selling pressure. However, bottom-fishing demand continuously appeared at deep declines, helping VN-Index narrow down the decline. However, these recovery waves are not enough to confirm that the market has stabilized.
This was reflected right in this morning's trading session on July 20. Selling pressure continued to occur widely and increased even more, causing the market to loosen its downward amplitude when entering the continuous order matching session. Red color flooded the electronic board and the VN-Index continued to record a decrease of 1,770 points.
Closing the morning session on July 20, VN-Index decreased by 33.07 points to the threshold of 1,754.38 points. Liquidity in the market reached 7,578 billion VND. On HOSE, there were only 40 gainers, 34 gainers and the rest were up to 274 losers.
Most industry groups did not escape the adjustment state. Regarding industry groups, most industry groups eased their decline towards the end of the session. In which, the securities group took the lead when recording a decrease of more than 4.2%, with VIX down 5.8%, SSI down 4.5%, VND down 4.8%, VCI down 5.4%..., the deepest decrease was CTS when it lost 6.9% and closed the session at the floor price of 24,300 VND/share.
The banking stock group also created great pressure on the market when most of them fell deeper. Except for LPB, which luckily maintained green with an increase of only 0.2%, the rest all decreased by more than 1%, notably such as TPB decreasing by 3.9%, EIB and OCB decreasing by 3.7%, SHB decreasing by 3.6%, CTG decreasing by 3.1%, TCB and BID decreasing by 2.9%, VCB decreasing by 2.7%...
Kafi Securities Company (Securities Company) assessed that the short-term trend continues to weaken as VN-Index forms a lower peak and lower bottom structure. The 1,750 point zone (MA200) is still important support, attracting bottom-fishing demand and contributing to helping the market form a short-term balanced state. However, market breadth has not improved, showing that the bottom-fishing process still needs more time and confirmation signals.
In the short term, VN-Index is likely to continue to struggle to test supply and demand. The 1,750 point zone continues to be supportive, while 1,800 points is a near resistance. If cash flow is more positive, the index may head towards the 1,850 point zone. Conversely, if losing the 1,750 point mark, the risk of deeper correction will increase.
DSC Securities Company expressed the view that this is still not the right time for short-term trading. Investors holding short-term positions should take advantage of recovery waves to the MA20 zone to reduce stock proportions. At the same time, it is necessary to avoid the downward average price strategy for stocks that are in a downward trend and continuously break through support zones.
From a long-term perspective, DSC Securities' experts believe that when market valuation gradually becomes more attractive, a ratio of about 50% of the portfolio is still considered suitable for stocks with good fundamentals. Increasing the ratio should only be considered when more positive signals appear from the macroeconomic environment, especially the cooling interest rate level or real cash flow returns to the market.
From a technical perspective, strong declines accompanied by sudden liquidity, 2-3 times higher than the average level, can be considered a reliable bottom-fishing signal and a basis for expecting a new upward momentum.
