Agriseco Research believes that the market trend after the increase may become less sustainable when liquidity has not yet recovered accordingly.
The market opened on July 2 in a positive state, with many groups of stocks continuing to recover. Increased demand helped the main index expand its upward momentum towards the end of the session. At the end of the session, the VN-Index increased by 15.23 points, equivalent to 1,21%, to 1,269.79 points. Foreign net selling was significantly weaker with a value of just over 30 billion VND in the entire market.
Commenting on the market trend in the next session, many securities companies believe that the upward trend may continue before encountering profit-taking pressure at a higher resistance level. However, some securities companies are cautious and warn of a correction in the context of weak liquidity. Investors are advised to trade cautiously.
Yuanta Securities Vietnam believes that the market may continue to recover and the VN-Index may retest the resistance level of 1,277 points. However, the analysis team still assesses that the market is only in the technical recovery phase and cannot confirm the current short-term trend reversal.
The positive point is that the short-term trend of many bank stocks has turned more positive, showing that the market is showing signs of slowing down the short-term decline, which means that the possibility of the VN-Index breaking through the 1,230-point level is underestimated. Yuanta recommends that investors can stop selling, continue to prioritize holding a low proportion of stocks at about 40% of the portfolio and should not buy new stocks again when the short-term risk is still high.
Similar, BSC Securities It is forecasted that in the coming sessions, the market may continue to increase inertia to return to the 1,280 threshold, however, the increase may still be stopped by profit-taking pressure.
Agriseco Research also forecasts that VN-Index will likely have a period of early progress to the resistance zone around 1,280 (+-5) points. However, Agriseco Research believes that the trend after the index's increase may become less sustainable when liquidity has not yet recovered accordingly.
Investors are advised to prioritize restructuring their portfolios, reducing the proportion of stocks with high price increases and speculative stocks when the index approaches the above resistance zone. Industry groups that expect positive profit growth in the second quarter such as retail, steel, and exports can be prioritized.
In the opinion of SHS Securities, market liquidity is still quite poor, reaching only about 60% at the average level. Therefore, VN-Index may still be under pressure to retest the price range of 1,255 points when encountering resistance around 1,280 points, corresponding to the equilibrium price range of the short-term accumulation channel of 1,250 points - 1,300 points. Short-term investors should maintain a reasonable proportion and may consider continuing to restructure their portfolios in the context that the market is waiting for information on the second quarter business results of enterprises.
Same view, Dragon Viet Securities (VDSC) The rapid price increase has brought the market closer to the first resistance zone, the 1,270 - 1,275 point zone. Therefore, the market is expected to be cautious in this zone and step back to re-test the cash flow with the support zone of 1,263 points. Investors need to slow down to observe supply and demand, but can still consider good price zones of some stocks for short-term buying. In addition, it is still necessary to consider the market's recovery to take profits or restructure the portfolio to minimize risks.
Source: CafeF
