HDFCBANK.NS Stock Today: 4-Day Slide, Q3 Jitters; Rs 1,756cr Block — January 08
HDFC Bank share price stayed under pressure for a fourth session as a large trade and a softer Q3 business update weighed on sentiment. Roughly 0.1% equity changed hands for Rs 1,756 crore, adding supply. The credit-deposit ratio is near 100%, keeping funding costs in focus before Q3 results on January 17. We track how this affects margins, growth, and positioning in HDFCBANK.NS for Indian investors seeking clear signals.
Block trade and price action
A large on-market transaction worth Rs 1,756 crore, roughly 0.1% of equity, crossed today and extended the losing streak by intensifying supply, according to Moneycontrol. Such blocks often trigger short-term volatility as participants digest the flow. For the HDFC Bank share price, the focus now shifts to whether demand at lower levels can absorb the additional shares quickly.
Selling pressure has pushed momentum into oversold territory with RSI at 28.76 and Williams %R at -94.95. Price is hovering near the Bollinger lower band at 962.59, while the 50-day average sits at 993.34 and the 200-day at 977.81. ATR at 13.76 signals wider intraday ranges. OBV is negative, showing distribution, but oversold readings can spark technical rebounds.
Q3 business update: deposits and growth mix
Investors are parsing the Q3 update that flagged slower deposit accretion versus credit growth, as highlighted by experts in Times of India. The credit-deposit ratio nearing 100% tightens liquidity and can lift funding costs. For the HDFC Bank share price, sustained deposit momentum will be key to stabilising margins and easing concerns around wholesale borrowing reliance.
A near-100% credit-deposit ratio leaves less surplus liquidity to fund fresh loans without raising pricier deposits or tapping wholesale markets. Management may prioritise term deposit mobilisation and CASA retention to rebalance. Investors should watch the retail versus wholesale mix in deposits and the pace of new-to-bank customer additions, as these can support lower-cost funding and aid medium-term profitability.
Margins, funding costs, and what to watch on January 17
With deposit repricing still working through, near-term NIM can face pressure even as asset yields stay firm. Brokerages remain constructive on medium-term growth and asset quality, but the market wants proof that funding costs are peaking. For the HDFC Bank share price, clear guidance on cost of funds, incremental deposit rates, and loan pricing discipline could be the catalyst to stabilise the trend.
On Q3 day, track deposit growth versus advances, CASA ratio direction, retail deposit traction, margin commentary, and credit costs. Any colour on fee income and merger synergies will help frame FY26 run-rate. The bank is slated to report on January 17, as noted by Times of India. A balanced print with improving deposits would likely calm pressure on HDFCBANK.NS stock.
Valuation, technicals, and risk-reward
On current metrics, the stock trades near a TTM P/E of 10.04 and P/B of 1.34, with a dividend yield of 1.42%. Our system grade stands at B with a Hold stance. That suggests room for mean re-rating if deposits accelerate and margins stabilise. For the HDFC Bank share price, execution on funding and steady asset quality are the swing variables for valuation.
Tactically, watch support near the Bollinger lower band around 962.6 and resistance near the 50-day average at 993.3 and the recent high zone near 1006. A close back above the 200-day average at 977.8 would help sentiment. Long-term investors may prefer staggered entries, aligning with deposit traction and NIM visibility in the upcoming HDFC Bank Q3 results.
Final Thoughts
The HDFC Bank share price is reacting to two near-term pressures: a Rs 1,756 crore block trade and a Q3 update that spotlights tighter funding. With the credit-deposit ratio near 100%, the market needs comfort that deposit growth will catch up and that funding costs are close to a peak. We will watch January 17 for trends in deposits versus advances, CASA, margin commentary, and credit costs. Technically, oversold readings could spark a bounce, but durability depends on deposit momentum. For most investors, disciplined position sizing and staggered buys make sense until the results confirm an improving funding and margin outlook.
FAQs
Why is the HDFC Bank share price under pressure today?
Two factors weighed on sentiment. A Rs 1,756 crore block trade, about 0.1% of equity, added supply and volatility. Also, the Q3 business update showed slower deposit accretion versus credit, pushing the credit-deposit ratio near 100%. That raised worries about funding costs and near-term margins, keeping the stock weak.
Is a Rs 1,756 crore block trade negative for long-term investors?
A block trade can pressure price in the short term as markets digest supply. It does not change fundamentals by itself. For long-term investors, the focus should be on deposits, margins, and asset quality trends. If Q3 shows better funding traction, the price impact of the block can fade quickly.
What should we track in HDFC Bank Q3 results on January 17?
Watch deposit growth versus advances, CASA ratio movement, and commentary on cost of funds and NIM trajectory. Also track fee income, credit costs, and any merger synergy updates. Clear signs of improving funding and stable asset quality can help the HDFC Bank share price stabilise after recent weakness.
Is HDFCBANK.NS attractive at current valuation?
Valuation looks reasonable with a TTM P/E near 10 and P/B around 1.34, plus a 1.42% dividend yield. For a better risk-reward, many investors will wait for stronger deposit traction and clearer margin visibility. Tactical entries can use support and resistance levels, but conviction likely hinges on the Q3 print.
Disclaimer:
The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.
