The Shanghai and Shenzhen stock markets were weak and fluctuated, and cyclical stocks rebounded.

The three major A-share stock indexes opened slightly higher on May 21. The Shanghai Composite Index opened 0.11% higher, the Shenzhen Component Index opened 0.32% higher, and the ChiNext Index opened higher. 0.61%. After opening slightly higher, the two cities launched a wave of tentative upside market, but it was quickly blocked. Finally, a wave of unilateral decline emerged in the morning, and the decline narrowed near the close of the afternoon market. In the afternoon, the two cities maintained a weak and volatile pattern, and eventually closed lower.

By the close of May 21, the Shanghai Composite Index fell 0.58% to 3,486.56 points; the Science and Technology 50 Index fell 1.1% to 1,15.21 points; the Shenzhen Component Index fell 0.81%, reported 14417.46 points; ChiNext index fell 0.97% to 3113.26 points.

So far this week, the Shanghai Composite Index fell 0.11%, the Science and Technology 50 Index rose 1.13%, the Shenzhen Component Index rose 1.47%, and the ChiNext Index rose 2.26%. Wind statistics show that 2029 companies in the two cities rose. 2068 companies fell, and there were 190 companies in the flat market.

On May 21, the total turnover of the Shanghai and Shenzhen stock markets was 808.0 billion yuan, an increase of 16.5 billion yuan from the 791.5 billion yuan in the previous trading day. Among them, the Shanghai stock market turnover was 356 billion yuan, an increase of 6 billion yuan from the 350 billion yuan in the previous trading day, and the Shenzhen stock market turnover was 452 billion yuan.

A total of 76 stocks in the Shanghai and Shenzhen stock markets have increased by more than 9%, and 10 stocks have fallen by more than 9%.

The total net outflow of northbound funds on May 21 was 578 million yuan. Among them, the net outflow of Shanghai Stock Connect was 2.072 billion yuan, and the net inflow of Shenzhen Stock Connect was 1.494 billion yuan. So far, the total net inflow of northbound funds this week is 475 million yuan.

Periodic stocks are picking up

In terms of sectors, steel stocks rebounded, Chongqing Iron & Steel (601005) daily limit, Bayi Iron & Steel (600581), Jiugang Hong Xing (600307) and others rose more than 5%.

The mining sector also rebounded. Hengtai Aipu (300157), Hainan Mining (601969), Tibet Mining (000762), etc. rose by more than 10%. Longgao (605086), China Coal Energy ( 601898), Yanzhou Coal Industry (600188), etc. rose by more than 5%.

The national defense military industry led the decline in the two cities, Jianglong Shipbuilding (300589), AVIC (002179) , Tianqin Equipment (300922), Xinyu Guoke (300722), etc. fell more than 4%.

Non-bank finance also performed poorly, Huachuang Yangan (600155) , Sony Financial (600318), Guolian Securities (601456), etc. fell more than 4%.

There is still room for upside after short-term adjustments

Guotai Junan believes that there is still room for upside after market turbulence adjustments. After the Shanghai Index rose rapidly last Friday and this Monday, it continued to consolidate. The ChiNext Index performed slightly better driven by the rise of some white horse stocks. The volatility of the index was mainly affected by the pressure from above. The market has now entered the pre-intensive trading area, and the Shanghai index is relatively densely locked above 3,500 points. In addition, many white horse stocks have also returned to near the high point before the Spring Festival, facing the double pressure of profit-making and reconciliation in the short-term, and the market has digested the pressure in a volatile manner. There is still room for upside after short-term adjustments.

In operation, Guotai Junan recommends focusing on the main line of performance. Recently, CROs in new energy vehicles, liquor, medical care, and medicine are in a rising trend. Performance is the main line of the market behind it. These industries have high prosperity and high performance growth with strong certainty. The market also has better expectations for the interim performance of these industries, and the digestion of high valuations will be faster. It is recommended to continue to focus on new energy vehicles, liquor, medical, medical CRO and other industries with high prosperity.

Yuekai Securities believes that the current correction in commodity prices will ease the market’s expectations of tighter liquidity. Appropriate attention should be paid to the entry of incremental funds. In the context of price regulation, the attractiveness of cyclical stocks has been affected to a certain extent. The current market is still in a period of style rotation, hotspots are changing rapidly, and there are many uncertainties in the procyclical sector. In the future, we still need to pay attention to factors such as inflation expectations and mismatches between supply and demand.

Guosheng Securities believes that the recent disturbances in the external environment of the two cities have further returned to the upward channel after the flag pattern trend, and touched the channelAlong the pressure bit. However, the overall hot topics are mainly in rapid rotation, and the current market sentiment is more hesitant to choose. Of course, in the early stage, the market preloaded and oscillated around 3,500 points, which may be an important support point at the moment. If there are panic fluctuations in the intraday, it may be a good time to buy low. From the perspective of the sector, heavy stocks of institutions with liquor and medicine as the main line have stabilized, and the market outlook will pay attention to the market leading stocks with strong certainty of related growth. In terms of operation, it is advisable to lighten the index, emphasize the structure, and lean towards growth. Generally speaking, A shares will quickly break away from the bottom after successful bottoming, but the top is facing pressure. The short-term opportunity of the market lies in event stimulus. Individual stocks that encounter resistance can be appropriately lightened; Institutions with low attention and high certainty are mainly Shigekura White Horse.