Asian Markets Trade Higher; HDFC Bank Deposits Grow While CASA Ratio Dips

Posted Date: July 06 2020
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At 8:00 am IST, the SGX Nifty Futures was trading at 10,656, compared with Nifty’s close of 10,607 on Friday.

Market status: Confirmed Uptrend

Global stock markets: Dow 30, +0.4%; S&P 500, +0.5%; Nasdaq, +0.5%; KOSPI, +1.3%; Nikkei, +1.4%; Hang Seng, +2.2%; Shanghai Composite, +3.2%.

Nifty retained its positive momentum for the third consecutive week. Last week, it gained 2.2% and moved closer to its 200-DMA (10,885). On Friday, it opened on a higher note and moved in a narrow range of 70 points during the day. The broader market indices, Nifty Midcap (+0.5%) and Smallcap (-0.1%) underperformed during the week.

The Indian market remains in a Confirmed Uptrend. If Nifty adds distribution days and breaches logical support levels, we may downgrade the market status to an Uptrend Under Pressure. It is prudent to only invest in stocks that have strong fundamentals (i.e., good sales, earnings, margins, etc.) and that are breaking out of sound base structures on heavy volume. The beauty of our CAN SLIM method is that we need not "expect," "hope," or "wish for" with respect to market action. We will take what the market gives us and continue to monitor unfolding conditions.

Key News

Hdfc Bank deposits grew 25% y/y to Rs 11,89,500 crore in Q1 FY21. Its advances increased 21% to Rs 10,04,500 crore. The bank’s CASA ratio decreased 220bps m/m to 40%.

Adani Ports and Special Economic Zone: The company achieved a throughput of 41.5 MMT in Q1 FY21 across its nine operating ports in India.

O’Neil Market Condition Report

For the 24 emerging markets tracked by our institutional research team, the market status breakdown is as follows: Confirmed Uptrend, 58%;Rally Attempt, 0%; Uptrend Under Pressure, 42%;Downtrend, 0%.

For the 24 developed markets tracked by our institutional research team, the market status breakdown is as follows: Confirmed Uptrend, 20%; Rally Attempt, 0%; Uptrend Under Pressure, 80%; Downtrend, 0%.

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Disclaimer: Information contained herein is not and should not be construed as an offer, solicitation, or recommendation to buy or sell securities. It is for educational purposes only.For more information, see our Legal disclosures here.
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