Stocks November 5: Sentiment is relieved, VN-Index may move towards 1,770 points

On November 4, VN-Index reversed and increased sharply by 33.4 points, equivalent to 1.97%, to 1,733.02 points. Market liquidity improved significantly, breadth was positive with 16/18 industry groups increasing.

VN-Index is aiming for the area of 1,750-1,770 points

According to Ho Chi Minh City Securities (HSC), cash flow improved and spread across many industry groups, contributing to strengthening the recovery rhythm. However, one session of strong increase is not enough to confirm that the downtrend has ended. The market needs to continue to maintain cash flow, especially in leading stock groups, and monitor the reaction of VN-Index at the resistance area of ​​1,750-1,780 points.

Sharing the same opinion about the possibility of further increase, BIDV Securities (BSC) commented that VN-Index could go up by inertia to test the 1,747 point area, corresponding to the 10-session average price line (MA10). If it passes, the index could move towards the 1,771 point area, corresponding to MA50.

However, BSC notes that VN-Index only closed slightly above the 20-session moving average (MA20), so the ability to maintain this threshold will determine the durability of the recovery.

Meanwhile, Saigon - Hanoi Securities (SHS) expects the index to recover to around 1,770 points. This is the resistance area formed from the downtrend line connecting the peaks of September and October 2026. When approaching this price range, selling pressure may increase again.

Positive support signal

Talking to Tuoi Tre, Mr. Nguyen Thai Thinh - Kafi Securities Macro Strategy Research Specialist - said that the information that the State Bank of Vietnam deployed foreign currency swap operations has a positive psychological impact in the context of an information vacuum in the market.

Although stock valuations have reached a fairly cheap level, the market does not have many driving factors. Signals of improved liquidity can have a certain supportive impact.

On the positive side, this additional source of liquidity can help banks increase their ability to grant credit. If part of the cash flow is not used immediately, this capital source can also be transferred to investment channels, including stocks.

However, Mr. Thinh noted that capital pressure on the banking system often increases at the end of the year. Interbank interest rates have exceeded 5%, showing that liquidity tensions still exist. This makes the room for capital flow to return to the stock market not really large.

Can disburse funds when the market fluctuates

Regarding strategy, HSC recommends that investors maintain a reasonable proportion of stocks, prioritizing businesses with good fundamentals, improved liquidity and positive price strength. Investors should not chase after a strong increase session. You should wait for shaking rhythms to disburse funds if VN-Index can maintain the support area around 1,700 points and demand continues to maintain.

Vietcombank Securities (VCBS) also recommends selecting stocks that have just increased from the support zone or an attractive discounted price base, with confirmed cash flow for disbursement when the market fluctuates. Notable groups include banking, securities and real estate.

SHS recommends that investors prioritize tracking good quality businesses, whose fundamental valuations are at their lowest level in 5-10 years and are still growing outstandingly.