Stock market commentary March 6: VN-Index may continue to correct to 1,300 points

VOV.VN - The stock market may continue to correct to the 1,300-point level of the VN-Index in today's session, March 6. At the same time, short-term risks are showing signs of increasing, suggesting that investors may stop making new purchases in the short term.

VN-Index is still under constant pressure to retest the 1,300 point price zone.

After a session of increasing points mainly under the influence of short-term rotation on banking stocks, VN30 continued to aim for the resistance zone around 1,375 points in the early session. VN-Index aimed for the price zone around 1,320 points, corresponding to the highest price zone in June 2022. Selling pressure then increased, expanding in many groups of codes, continuing the selling pressure in the previous session. Selling pressure increased more strongly in the late afternoon session. At the end of the trading session on March 5, VN-Index decreased by -7.20 points (-0.55%) to 1,304.71 points, under pressure to test the psychological price zone of 1,300 points. VN30 decreased by -4.06 points (-0.30%) to 1,363.91 points, under selling pressure at the resistance zone of 1,375 points, the highest price in October 2024.

Market breadth on HOSE is negative, focusing on the group of small and medium-cap stocks that had a good price increase before with 249 stocks decreasing in price; 69 stocks increasing in price and 50 stocks maintaining the reference price. Market liquidity is above average with trading volume decreasing -2.6% compared to the previous session on HOSE. However, after a short-term increase in many stocks, the trend is weakening with a sharp increase in short-term selling pressure. Foreign investors continued to net sell with a value of -355.5 billion VND on HOSE in the session of March 5.

At the end of the trading session on March 5, VN-Index decreased -7.20 points (-0.55%) to 1,304.71 points.

According to experts from Saigon - Hanoi Securities Company (SHS), in the short term, VN-Index maintains growth with the nearest support zone around the psychological mark of 1,300 points. After VN-Index surpassed the psychological resistance zone with liquidity exceeding the average level of 2024, the medium-term outlook of the market became more positive. However, in the short term, VN-Index is still under constant pressure to retest the price zone of 1,300 points, as well as create a new price base on the new liquidity base. This is also the trend that has been predicted in many previous reports.

In the short term, the VN-Index continued to increase in price after 6 weeks from 1,220 points to 1,300 points, which is not an attractive price range to increase investment proportion for many stocks. The market became less positive for many stocks and groups of stocks when short-term selling pressure increased more strongly, after a period of quite good price increase.

“In case investors have a high short-term weight and an expanding portfolio, they should consider restructuring to reduce the short-term weight. Positions that increase weight need to be carefully selected. Focus on good quality stocks and control short-term risks. Investors maintain a reasonable weight. The investment target is stocks with good fundamentals, leading in strategic industries, and outstanding growth of the economy ,” SHS experts noted.

VN-Index may continue to correct to 1,300 points

According to the analysis team of Kien Thiet Securities Company (CSI), the sudden increase in supply in the afternoon session, especially in the ATC session, wiped out all the efforts to increase points in the morning session, causing the VN-Index to have a deep decline, closing at the lowest level of the day. On the technical chart, the Bearish Engulfing reversal candlestick pattern appeared, showing that the uptrend has signs of slowing down. Liquidity on March 5 decreased compared to the previous session, but remained at a high level when the matched volume was higher (+38.5%) than the average of 20 sessions. With the somewhat negative developments in the March 5 session, it is highly likely that the VN-Index will continue to correct in the coming sessions to move towards the support level of 1,288 - 1,290 points. Although quite negative in the March 5 session, the uptrend may not be broken, but in the short term it is quite risky for new buying positions.

VN-Index may continue to adjust to 1,300 points (Illustration photo: KT)

“For accounts that have already partially closed their portfolio at the previously expected resistance level of 1,307 - 1,327 points, investors can adjust the timing to the support zone to buy again,” said CSI experts.

Meanwhile, experts from Yuanta Vietnam Securities Company (YSVN) said that the market may continue to adjust to the 1,300-point level of the VN-Index in today's session, March 6. At the same time, short-term risks are showing signs of increasing, indicating that investors may stop buying new stocks in the short term. In addition, the sentiment indicator continues to decrease, warning that investors are becoming less optimistic and the upward momentum is showing signs of slowing down in the short term.

“The short-term trend of the general market has decreased from increasing to neutral. Therefore, investors can reduce the proportion of stocks to a balanced level of 50-55% of the portfolio, especially prioritizing the reduction of the proportion of stocks in the Smallcaps and Upcom groups,” YSVN experts recommended.

► Some stocks to watch on March 6