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U.S. Indices Close Higher; Bajaj Finance Q1 New Loans Down 76% y/y

July 07 2020
Market Preview

At 8:00 am IST, the SGX Nifty Futures was trading at 10,727, compared with Nifty’s yesterday’s close of 10,763.

Market status: Confirmed Uptrend

Global stock markets: Dow 30, +1.8%; S&P 500, +1.6%; Nasdaq, +2.2%; KOSPI, -0.5%; Nikkei, -0.7%; Hang Seng, +0.1%; Shanghai Composite, +1.3%.

Yesterday, Nifty gapped higher and kept the positive momentum intact during the day, forming higher highs in the hourly chart. After making a high of 10,811, there was minor profit booking in the last hour and closed near 10,760. In the process, the index came further close to its 200-DMA (10,885). Volume was higher across the board. In the broader market, Nifty Midcap and Smallcap closed with a gain of 1.7% and 1.8%, respectively. Both FIIs (Rs 350 crore) and DIIs (Rs 265 crore) were net buyers.

On the sectoral front, barring Nifty Pharma (-0.6%), all the sectoral indices closed in the green. Nifty Realty (+3%) gained the most, followed by Nifty Auto, which was up more than 2.8%. Market breadth was inclined toward advancers. Of 2,157 stocks traded, 1,120 advanced, 719 declined, and the remaining traded flat.

The Indian market remains in a Confirmed Uptrend. However, things can change quickly due to high volatility. We are operating in an uncertain environment, where information is distributed unevenly, and it is an environment where outside forces, either intentionally or unintentionally, affect prices across various time frames. We will continue to monitor the behavior of leading stocks and keep an open mind as to how it unfolds. We will wait for solid entry points before buying.

Key News

Multi Cmod.Ex.Of India will launch gold mini options, effective this Friday, as it receives approval from SEBI. Gold mini options will have 100 grams gold bar as underlying asset.

Bandhan Bank in its Q1 FY21 update said that loan grew 18% y/y to Rs 74,300 crore. Total deposits grew 6% q/q at Rs 60,600 crore.

Bajaj Finance in its Q1 FY20 update said that AUM at Rs 1.38 lakh crore grew 7.1% y/y, but was down 6.5% q/q. Deposits grew 32.6% y/y at Rs 20,000 crore, but was down 6.5% q/q. New loan was down 76.6% y/y and 71.7% q/q.

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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