Market Update [November 20] – VN-Index rises on late recovery
On Tuesday (October 20th), after losing more than 6 points at lows, the VN-Index rebounded to end higher thanks to the late recovery of some large caps. Particularly, VIC, VNM, VHM, HPG and VRE were the largest contributors, rising 0.83%, 0.95%, 2.88%, 2.96% and 1.66% respectively.
By the closing bell, the VN-Index gained 2.96 points (+0.32%) to close at 919.02. Trading volume was nearly 160 million shares, worth VND4,100 billion. Breadth was negative, with losers topping gainers 144 to 130. Foreign investors net sold nearly VND80 billion on the HSX.
In view of technical analysis, the VN-Index’s chart retests successfully the broken resistance level of 911, or MA(20), is quite positive. Therefore, we believe that, in a positive scenario, the VN-Index will test the nearest resistance range of 920 – 930, at which investors can sell a part of the existing short-term portfolio. In a negative scenario, the nearest support range of VN-Index is forecast at 900 – 910, the next support range is expected at 880 – 890. Based on Kelly formula, the recommended proportion of the portfolio is 50% cash/ 50% stocks.
Please see the attached file for more details.