Although there was not much news impact, the stock market started the new week's trading session and continued to decline quite sharply. At the end of the trading session, VN-Index decreased more than 10 points and returned close to 1,254.64 points. The overall market breadth was in favor of sellers with 530 codes decreasing and 224 codes increasing. The red color is somewhat dominant in the VN30-Index basket with 15 decreasing codes, 12 increasing codes and 3 reference codes. Total trading volume reached more than 923 million units, worth more than 21 trillion VND. Banking stocks continue to be the fulcrum for the market in not losing the resistance level of 1,250 points.
The positive point for the movement of VN-Index in the current period is that, although the support threshold of 1,270 points has not been able to be maintained, the very strong short-term support threshold around 1,250 points has not shown signs of being violated. From a technical perspective, the VN-Index movement continues to record consecutive correction sessions. This development occurred in the context of the derivative maturity week of the July derivatives contract and this movement is considered not unusual at these times.
Besides, liquidity also recorded a stronger improvement compared to last week, showing that short-term profit-taking pressure is still present. However, bottom-fishing demand at low price areas is still continuously recorded, this is completely consistent with the psychology of taking advantage of the derivative maturity context and cyclical fluctuations of the derivatives market. generated to optimize disbursement points in the base market.
Evaluating the market, Dr. Nguyen Duy Phuong, Investment Director of DG Capital, said that observing the market in the sessions over the weekend to July 22, it can be seen that selling pressure increased stronger during the financial securities session . accounts, showing that the temporary T+ trading psychology still dominates the majority of investors, lacking confidence in the new uptrend of the index. It is likely that the corrective inertia will not end soon and developments will still be differentiated among stocks, however the support from the group of pillar stocks will maintain the uptrend for VN-Index. Besides, margin use should also be limited at this time to avoid unexpected potential risks occurring in the short term, Dr. Phuong stated.
Analysts from Kafi Securities Company are of the opinion that, with current developments, the pressure for adjustment and demand at low price areas is still quite balanced, creating a tug-of-war scenario within a range of about 50 point. It can be said that VN-Index will still maintain accumulation in the frame of 1,250 - 1,290 points in the short term, as investors continue to wait for the business results of the second quarter of 2024 to be announced soon this week. In the current context, investors are recommended to continue to be cautious and pursue a concentrated portfolio strategy when market movements do not support the ability to surf short waves.
