Stocks this week may correct to the 1,600 point zone

That is the opinion of many experts after VN-Index continuously reached peaks and then suddenly plummeted last week.

The stock market was full of excitement last week when the VN-Index broke through the psychological mark of 1,600 points and quickly approached 1,700 points. The strong increase was led by the banking group and large-cap stocks, helping investors become optimistic.

However, selling pressure increased in the last session of the week. The market witnessed a strong correction, almost erasing all previous achievements when VN-Index fell more than 42 points. At the end of the week, VN-Index still increased by 0.95% to 1,645 points.

Forecasting the market next week, Saigon - Hanoi Securities Joint Stock Company (SHS) said that the market has shown signs of peaking after a hot increase with strong rotation and speculation in most industry groups. VN30 is under selling pressure around 1,880 points, while VN - Index is being sold heavily in the 1,700 point area. SHS forecasts that the index may continue to adjust to the 1,600 point area when short-term speculative positions weaken and liquidity gradually slows down after the boom period.

Accordingly, the “speculative peak” phase has passed, the market will return to fundamental valuation factors and expectations for Q3 business results. Investors are advised to closely monitor developments, restructure their portfolios, reduce weak stocks and prioritize holding stocks with good fundamentals, in the top group of the industry.

Sharing the same view, Viet Capital Securities Joint Stock Company (VCSC) also said that although the VN-Index had a strong correction, part of the decline was narrowed towards the end of the day and the index still ended the week with an increase. Therefore, there is a high possibility that there will be a technical recovery in the next trading session, retesting the resistance zone around 1,660-1,665 points.

" The recovery accompanied by low buying activity and high differentiation will increase the possibility of a correction to the 1,600 point mark in the coming time ," VCSC forecasted.

Bao Viet Securities Joint Stock Company (BVSC) also forecasts that the adjustment pressure on mid- and small-cap stocks that have increased rapidly in the recent period is still present. However, these stocks may experience a few technical gain sessions before entering the accumulation adjustment process in the late August period.

We still maintain the view that this is a necessary correction in a possible continued uptrend of this group in September.

" Investors can continue to hold existing positions, while managing risks by gradually raising stop-loss thresholds for short-term speculations ," BVSC warned.

This week's stock market is expected to correct to around 1,600 points. (Illustration photo).

Meanwhile, SSI Securities Corporation (SSI) commented that the VN-Index closed the third consecutive week of gains, reinforcing the main trend leaning towards the positive direction. However, the pressure of fluctuations also increased in the high price range, especially around the resistance zone of 1,680 - 1,700 when profit-taking supply increased.

On the daily chart, short-term momentum is cooling off in the overbought zone along with a cautious move in the score after the previous breadth divergence.

Thus, the index may enter an accumulation - tug-of-war phase to test the short-term balance; with near-term support identified around the 1,630 - 1,640 area.

Should I sell or buy stocks?

Faced with a possible downward trend, Mr. Dang Tran Phuc, Chairman of the Board of Directors of AZfin Vietnam JSC, said that at this time, investors should prepare money and focus on positive stocks with prospects for the end of the year to buy.

“ Investors should buy when the market drops dramatically. The groups of stocks that can be invested are: Industrial real estate stocks, because in reality, when the tariff policy is quite clear, it does not affect foreign investors.

The second group is the group that directly benefits from GDP growth, good business growth, and reduced bad debt, which is the bank.

These are two groups that are both well priced and attractive, so investors can refer to them ," Mr. Phuc advised.

Meanwhile, Mr. Phan Manh Ha, Sales Director of VnDirect, recommends not buying stocks just because of fear of missing out on opportunities, especially with stocks that have increased rapidly in the recent period.

Instead, investors should study the economic context in the next 6 months and be patient with the stocks with good fundamentals that they are holding. If they want to buy now, they can target good stocks that are still in the accumulation zone, with cash flow coming in to buy.

For investors who have made large profits thanks to the recent "local fever", they should take partial profits to regenerate purchasing power during market correction sessions.

According to Mr. Ha, for investors who still have cash at the present time, they should start as a new investment. In particular, investors need to pay attention to determining their risk appetite, thereby determining their trading strategy and tactics.

“ Investors need to choose stocks and portfolios that suit their investment taste and risk tolerance. At the same time, they should focus on the long-term trend of stocks, especially when the market has gone up strongly.

At the same time, it is possible to combine swing trading tactics (short-term trading) to optimize capital costs in small market fluctuations. This tactic involves the proportion of cash and stocks in each session and each period, rather than holding money to wait for the market to adjust, because it is very difficult to predict small adjustments in a large growth cycle ," Mr. Ha advised.

Mr. Nguyen The Minh - Director of Analysis of Individual Clients of Yuanta Vietnam Securities Company - recommends that investors with high proportions should also consider selling and not bottom fishing at this time.

“ This is not the time for investors to buy at the bottom. Investors should prioritize selling to reduce the proportion to a balanced level of 40-50% of the portfolio to ensure risk safety. Especially when there is margin (financial leverage), it needs to be eliminated so as not to affect the investment, ” said Mr. Minh.

According to Mr. Minh, if you want to continue investing, you should choose bank stocks because the valuation of this group is still not too risky.

The next group is the food and foodstuff group. This group has been continuously increasing recently, although the growth rate is not too hot and the valuation is not high.

Chau Anh

Source: https://vtcnews.vn/chung-khoan-tuan-nay-co-the-dieu-chinh-ve-vung-1-600-diem-ar961544.html