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HDFC Bank Ltd.
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  • News
  • Financials
  • Technicals
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  • About

HDFC Bank Ltd.

  • 1,466.65-2.10 (-0.14%)
  • Closed
  • As On: 15 Jan, 2021, 04:01 PM IST
  • Open1,469.10
  • High1,471.65
  • Low1,445.00
  • Prev Close1,468.75
  • Volume70,82,618
  • VWAP(₹)1,458.14
  • Covid crisis - Q3, adequately provided

    The provisions made for possible rise in non-performing assets due to covid crisis are good enough.
  • Fee-based Income

    The bank has one of the highest fee-based income streams in the private sector. In the second quarter of FY-21 it has seen a sharp rebound indicating the strength of its franchise.
  • Focus - tier III and rural areas

    The bank had been steadily increasing its operations in smaller cities and semi-urban areas. At the end of FY-20, out of its total 5,412 domestic banking outlets, 1158 were in rural areas and 1,650 in semi-urban areas. It is well placed to tap into the growing rural income.
  • Increasing focus on gold loans

    Loans against gold jewellery grew to over Rs 6,200 crore in FY 2019-20 from over Rs 5,900 crore in FY 2018-19. In FY-20, it added 150 branches through which gold loans would be distributed. Gold loan is one of the highest margins and lowest NPAs businesses in the lending space.

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Key Metrics

  • PE Ratio(x)27.32
  • EPS - TTM(₹)53.69
  • MCap(₹ Cr.)8,07,780
  • MCap Rank1
  • PB Ratio(x)4.57
  • Div Yield(%)0.17
  • Face Value(₹)1.00
  • 52W High(₹)1,496.90
  • 52W Low(₹)738.75
  • MCap/Sales3.87
  • Beta(1 Month)1.09
  • BV/Share(₹)321.25

Returns

  • 1 Day-0.14%
  • 1 Month5.42%
  • 3 Months25.44%
  • 1 Year14.2%
  • 3 Years54.57%
  • 5 Years181.47%

Financials

    • Profit Per Branch - Uptrend

      Net profit per branch has been continuously increasing over the last 3 years with a growth of 17.37% last year. (Source: Standalone Financials)
    Sep 2020Jun 2020Mar 2020Dec 2019Sep 2019
    Total Income38,438.4736,698.5938,287.1738,325.7036,130.96
    Total Income Growth (%)4.74-4.15-0.106.075.26
    Provisions & Contingencies4,420.134,344.514,216.503,477.903,091.20
    Provisions & Contingencies Growth (%)1.743.0421.2412.516.07
    Profit after Tax (PAT)7,702.866,927.247,280.227,659.656,638.03
    PAT Growth (%)11.20-4.85-4.9515.3916.95
    Gross NPA (%)-----
    Net NPA (%)-----
    Net Profit Margin (%)20.0418.8819.0119.9918.37
    Basic EPS (₹)14.0012.6013.3014.0012.10
    Sep 2020Jun 2020Mar 2020Dec 2019Sep 2019
    Total Income36,069.4234,453.2835,917.6336,039.0033,755.00
    Total Income Growth (%)4.69-4.08-0.346.774.30
    Provisions & Contingencies3,703.503,891.523,784.493,043.562,700.68
    Provisions & Contingencies Growth (%)-4.832.8324.3412.703.33
    Profit after Tax (PAT)7,513.116,658.626,927.697,416.486,344.99
    PAT Growth (%)12.83-3.88-6.5916.8913.95
    Gross NPA (%)1.081.361.261.421.38
    Net NPA (%)0.170.330.360.480.42
    Net Profit Margin (%)20.8319.3319.2920.5818.80
    Basic EPS (₹)13.7012.1012.6013.5011.60
    FY 2020FY 2019FY 2018FY 2017FY 2016
    Total Income1,47,068.271,24,107.791,01,344.4586,148.9974,373.22
    Total Income Growth (%)18.5022.4617.6415.8323.52
    Provisions & Contingencies24,598.5220,254.7316,474.9012,068.939,654.43
    Provisions & Contingencies Growth (%)21.4522.9436.5125.0126.27
    Profit after Tax (PAT)27,253.9522,332.4318,510.0215,253.0312,801.33
    PAT Growth (%)21.6120.9321.4119.2719.79
    Net Interest Margin (%)3.793.973.883.943.98
    Net Profit Margin (%)22.3021.2321.7020.8120.26
    Basic EPS (₹)49.8483.3371.7359.9550.85
    FY 2020FY 2019FY 2018FY 2017FY 2016
    Total Income1,38,073.471,16,597.9495,461.6681,602.4670,973.17
    Total Income Growth (%)18.4222.1416.9814.9823.50
    Provisions & Contingencies22,492.2318,671.5715,138.0611,182.749,067.32
    Provisions & Contingencies Growth (%)20.4623.3435.3723.3326.14
    Profit after Tax (PAT)26,257.3221,078.1717,486.7314,549.6412,296.21
    PAT Growth (%)24.5720.5420.1918.3320.36
    Net Interest Margin (%)3.673.873.763.833.89
    Net Profit Margin (%)22.8621.2921.7920.9920.41
    Basic EPS (₹)48.0178.6567.7657.1848.84

    All figures in Rs Cr, unless mentioned otherwise

    • Loan Book Growth - Beating 5 Yr CAGR

      HDFC Bank Ltd. reported a YoY increase of 20.07% in its advances, which is higher than its 5 yr CAGR of 16.45%. (Source: Consolidated Financials)
    AnnualFY 2020FY 2019FY 2018FY 2017FY 2016
    Advances10,43,670.888,69,222.667,00,033.845,85,480.994,87,290.42
    Advances Growth (%)20.0724.1719.5720.1527.09
    Deposits11,46,207.139,22,502.687,88,375.146,43,134.255,45,873.29
    Deposits Growth (%)24.2517.0122.5817.8221.23
    Total Equity1,76,935.351,54,174.451,09,955.4692,085.3974,484.75
    Total Equity Growth (%)14.7640.2219.4123.6317.64
    Gross NPA (%)-----
    Net NPA (%)-----
    Capital Adequacy Ratios (%)-----
    Contingent Liabilities11,30,474.0610,25,125.318,75,776.978,18,284.298,21,774.81
    AnnualFY 2020FY 2019FY 2018FY 2017FY 2016
    Advances9,93,702.888,19,401.226,58,333.095,54,568.204,64,593.96
    Advances Growth (%)21.2724.4718.7119.3727.11
    Deposits11,47,502.299,23,140.937,88,770.646,43,639.665,46,424.19
    Deposits Growth (%)24.3017.0422.5517.7921.21
    Total Equity1,70,986.031,49,206.351,06,295.0089,462.3572,677.76
    Total Equity Growth (%)14.6040.3718.8223.0917.20
    Gross NPA (%)1.261.361.301.050.94
    Net NPA (%)0.360.390.400.330.28
    Capital Adequacy Ratios (%)18.5217.1114.8214.5515.53
    Contingent Liabilities11,28,953.4010,24,715.128,75,488.238,17,869.598,21,565.54

    All figures in Rs Cr, unless mentioned otherwise

    • Increase in Cash from Investing

      Company has used Rs 1616.92 cr for investing activities which is an YoY increase of 1.16%. (Source: Consolidated Financials)
    AnnualFY 2020FY 2019FY 2018FY 2017FY 2016
    Net Cash flow from Operating Activities-16,869.09-62,871.5417,214.3817,281.59-7,676.90
    Net Cash used in Investing Activities-1,616.92-1,598.41-852.19-1,147.68-865.55
    Net Cash flow from Financing Activities24,394.5023,130.6957,377.66-5,892.9711,056.67
    Net Cash Flow6,122.47-41,243.9173,750.4410,242.242,542.46
    Closing Cash & Cash Equivalent87,940.1181,817.641,23,061.5649,311.1239,068.88
    Closing Cash & Cash Equivalent Growth (%)7.48-33.51149.5626.226.96
    AnnualFY 2020FY 2019FY 2018FY 2017FY 2016
    Net Cash flow from Operating Activities-16,689.78-56,054.6726,074.0723,585.40-3,224.67
    Net Cash used in Investing Activities-1,104.92-1,326.12-533.10-1,956.25-804.76
    Net Cash flow from Financing Activities22,851.7915,718.0048,411.43-11,567.636,588.57
    Net Cash Flow5,271.08-41,567.4473,962.9910,033.262,587.39
    Closing Cash & Cash Equivalent86,618.7281,347.641,22,915.0848,952.1038,918.84
    Closing Cash & Cash Equivalent Growth (%)6.48-33.82151.0925.787.12

    All figures in Rs Cr, unless mentioned otherwise

  • AnnualFY 2020FY 2019FY 2018FY 2017FY 2016
    Return on Equity (%)15.4514.5316.8816.6117.22
    Return on Assets (%)1.721.721.671.701.75
    Cost to Income (%)39.1838.6339.8638.0936.95
    Interest income to Earning assets (%)7.728.137.738.218.64
    Interest Expense to Earning assets (%)3.934.153.844.264.66
    Price to Earnings (x)17.3628.2526.5324.2721.19
    Price to Book (x)2.684.114.484.033.64
    Price to Sales (x)3.876.005.765.044.29
    Operating Profit Margin (%)1.973.322.933.282.54
    AnnualFY 2020FY 2019FY 2018FY 2017FY 2016
    Return on Equity (%)15.3514.1216.4516.2616.91
    Return on Assets (%)1.711.691.641.681.73
    Cost to Income (%)38.5238.4139.6237.8436.69
    Interest income to Earning assets (%)7.507.957.548.028.49
    Interest Expense to Earning assets (%)3.834.073.774.184.60
    Price to Earnings (x)18.0229.9428.0925.4522.03
    Price to Book (x)2.764.234.624.133.73
    Price to Sales (x)4.126.376.125.334.50
    Operating Profit Margin (%)2.603.482.823.252.56
    • Second half may bring relief

      Overall, we expect the growth to remain subdued in the first half of FY 2020-21, with growth contracting in the first and second quarters and a gradual recovery in the second half supported by fiscal and monetary policy stimulus.

    • MSME - might be trouble for some time

      The MSME sector that encompasses a wide range of industries had been under considerable stress for a prolonged period before the incidence of COVID. This made them particularly vulnerable to the lockdown and its aftermath.

    • Moderated credit growth

      In the financial sector, credit growth moderated to 6.8 per cent in May 2020 from 13.5 per cent a year ago. The weakness was recorded in agriculture and services while credit deployment to industrial sector improved at the margin

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Technicals

  • Heikin-Ashi Changeover

    Bearish indication on daily chart

    • Prev. Close Price

      1463.10

    • LTP

      1466.65

    Formed on: 15 Jan 2021

    On daily price chart, Heikin-Ashi candle changed from Green to Red

  • 49%
    Positive Movement
    since 1st Jan 2005
    on basis
    51%
    Negative Movement
    since 1st Jan 2005
    on basis
    Exclude

    Global Meltdown1st Jan 2008 to 10th Nov 2008

    Covid Crisis1st Feb 2020 to 31st Mar 2020

  • R11477.20Pivot

    1461.10

    S11450.55
    R21487.75S21434.45
    R31514.40S31407.80
  • 5 Days14 Days28 Days
    30.0130.3131.46

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Peers

    • Stock Returns vs Nifty 100

      Stock gave a 3 year return of 51.65% as compared to Nifty 100 which gave a return of 29.61%. (as of last trading session)
    • Stock Returns vs Nifty Bank

      Stock generated 51.65% return as compared to Nifty Bank which gave investors 22.66% return over 3 year time period. (as of last trading session)
    • CHART
    • TABLE
    • 1D
    • 1W
    • 1M
    • 3M
    • 6M
    • 1Y
    • 5Y
    • Stock Returns vs Nifty 100

      Stock gave a 3 year return of 51.65% as compared to Nifty 100 which gave a return of 29.61%. (as of last trading session)
    • Stock Returns vs Nifty Bank

      Stock generated 51.65% return as compared to Nifty Bank which gave investors 22.66% return over 3 year time period. (as of last trading session)
    NAMEP/E (x)P/B (x)ROE %ROA %Rev CAGR [3Yr]OPMNPMNIM %Cost to Income %Interest income to Earning assets %Net NPA %Capital Adequacy Ratio %
    HDFC Bank27.324.5715.451.7219.301.9722.303.7939.187.720.3618.52
    ICICI Bank26.902.897.980.699.62-63.3211.272.9162.686.151.5416.11
    Kotak Bank40.745.4912.891.9313.86-24.7425.673.9651.347.550.7117.89
    Axis Bank58.212.392.140.1911.48-22.692.902.7750.196.861.5617.53
    IndusInd Bank26.112.1412.941.4524.10-8.6615.483.9240.729.360.9115.04
    Add More
    Annual Ratios (%)

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    Found Peer Comparison useful?

    Shareholding Patterns

    • Category31 Dec 202030 Jun 202031 Mar 202031 Dec 2019
      Promoters26.0026.1026.1426.18
      Pledge0.000.000.000.00
      FII43.4140.7639.7541.04
      DII17.4118.1418.6817.73
      Mutual Funds13.3614.0415.0114.38
      Others13.1815.0015.4315.05
    • CategoryNo. of SharesPercentage% Change QoQ
      Promoters1,16,46,25,83426.00 %-0.10
      Pledge00.00 %0.00
      FII1,94,47,83,87643.41 %2.65
      DII77,95,91,47017.41 %-0.73
      MF59,84,09,82913.36 %-0.68
      Others1,61,86,55,75213.18 %-1.82

    Mutual Funds Ownership

    MF Ownership as on 31 December 2020

    • Equity: Large Cap
      • 9,269.81

        Amount Invested (in Cr.)

      • 10.36%

        % of AUM

      • 2.16

        % Change (MoM basis)

    • Equity: Large Cap
      • 4,382.03

        Amount Invested (in Cr.)

      • 11.2%

        % of AUM

      • 4.04

        % Change (MoM basis)

    • Equity: Large Cap
      3
      • 2,592.52

        Amount Invested (in Cr.)

      • 10%

        % of AUM

      • -7.26

        % Change (MoM basis)

    Futures & Options

      • Expiry Month
      DatePrice

      27-09-2020Current

      1,469.35-6.65 (-0.45%)

      1,473.65
      Open
      1,476.15
      High
      1,450.50
      Low
      1,476.00
      Prev Close
      19,004
      Contracts Traded
      1,52,932.03
      Turnover (₹ Lakhs)
      • Type
      • Expiry Month
      • Strike Price
      DatePrice

      27-09-2020Current

      0.00-454.70 (-100.00%)

      0.00
      Open
      0.00
      High
      0.00
      Low
      454.70
      Close
      0
      Contracts Traded
      0.00
      Turnover (₹ Lakhs)

    Corporate Actions

    • Board Meeting

      Quarterly Results

      Dec 15, 2020

      General Meeting

      -

      Nov 02, 2020

      Board Meeting

      Audited Results

      Sep 14, 2020

    • Announced onMeeting on
      Dec 15, 2020Jan 16, 2021
      Quarterly Results
      Sep 14, 2020Oct 17, 2020
      Audited Results
      Jun 15, 2020Jul 18, 2020
      Quarterly Results
      Mar 11, 2020Apr 18, 2020
      Audited Results & Final Dividend
      Dec 09, 2019Jan 18, 2020
      Quarterly Results
    • Announced onEx-DateDividend%
      Jul 22, 2019Aug 01, 2019250%
      Apr 22, 2019Jun 20, 2019750%
      Apr 23, 2018May 31, 2018650%
      Apr 24, 2017Jun 29, 2017550%
      Apr 22, 2016Jun 29, 2016475%
    • No Data Available

    • Announced onEx-Date
      May 22, 2019Sep 19, 2019
      Split: Old FV2.0| New FV:1.0
      Apr 18, 2011Jul 14, 2011
      Split: Old FV10.0| New FV:2.0
    • No Data Available

    • Announced onMeeting on
      Nov 02, 2020Dec 03, 2020
      -
      Jun 22, 2020Jul 18, 2020
      -
      May 23, 2019Jul 12, 2019
      -
      May 22, 2018Jun 29, 2018
      -
      Dec 20, 2017Jan 19, 2018
      -

    About

    HDFC Bank Ltd., incorporated in the year 1994, is a banking company (having a market cap of Rs 807780.50 Crore).

    HDFC Bank Ltd. key Products/Revenue Segments include Interest & Discount on Advances & Bills which contributed Rs 91787.88 Crore to Sales Value (79.94 % of Total Sales), Income From Investment which contributed Rs 20633.32 Crore to Sales Value (17.97 % of Total Sales), Interest On Balances with RBI and Other Inter-Bank Funds which contributed Rs 1828.93 Crore to Sales Value (1.59 % of Total Sales) and Interest which contributed Rs 562.52 Crore to Sales Value (0.48 % of Total Sales)for the year ending 31-Mar-2020.

    The Bank has reported a Gross Non Performing Assets (Gross NPAs) of Rs .00 Crore (.00 % of total assets) and Net Non Performing Assets (Net NPAs) of Rs .00 Crore (.00% of total assets).

    For the quarter ended 30-09-2020, the company has reported a Consolidated Interest Income of Rs 25119.76 Crore, down -3.30 % from last quarter Interest Income of Rs 25978.00 Crore and up 3.23 % from last year same quarter Interest Income of Rs 24333.99 Crore. The bank has reported net profit after tax of Rs 7711.37 Crore in latest quarter.

    The bank’s top management includes Mr.Aditya Puri, Mr.Umesh Chandra Sarangi, Mr.Srikanth Nadhamuni, Mr.Sashidhar Jagdishan, Mr.Sanjiv Sachar, Mr.Sandeep Parekh, Mr.Malay Patel, Mr.M D Ranganath, Mr.Keki Mistry, Mr.Kaizad Bharucha, Mr.Bhavesh Zaveri, Mrs.Shyamala Gopinath. It has MSKA & Associates as its auditoRs As on 31-12-2020, the company has a total of 5,507,656,932 shares outstanding.

    About HDFC Bank

    HDFC Bank Ltd., incorporated in the year 1994, is a banking company (having a market cap of Rs 807780.50 Crore). Show More

    Key Indices Listed On

    Nifty 50, S&P BSE Sensex, Nifty Bank, Nifty 100, Nifty 200

    Address

    HDFC Bank House,Senapati Bapat Marg,Mumbai, Maharashtra - 400013

    Executive Leadership

    AA

    Abhay Aima

    Group Head
    AP

    Aditya Puri

    CEO
    AP

    Aditya Puri

    Managing Director
    AK

    Arvind Kapil

    Group Head
    Show More

    Auditors

    MSKA & Associates

    HDFC Bank Share Price Update

    HDFC Bank Ltd. share price moved down by -0.14% from its previous close of Rs 1,468.75. HDFC Bank Ltd. stock last traded price is 1,466.65

    Share PriceValue
    Today/Current/Last1,466.65
    Previous Day1,468.75

    DATA SOURCES: TickerPlant (for live BSE/NSE quotes service) and Dion Global Solutions Ltd. (for corporate data, historical price & volume, F&O data). Sensex & BSE Quotes and Nifty & NSE Quotes are real-time and licensed from BSE and NSE respectively. All timestamps are reflected in IST (Indian Standard Time).

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    Markets Data

    *

    Key Metrics

    • This is a ratio arrived at by dividing the current market price of a stock by its latest (annual or annualized) earnings per share. Here we have taken the TTM (trailing twelve months) adjusted earnings per share.

    • Earnings per share (TTM) tells the profit after tax earned on a per share basis by a stock over the last twelve months or four quarters.

    • MCap or Market capitalization of a stock is calculated by multiplying the total number of shares outstanding of that particular stock with its current market price.

    • This is the ranking of a company within its sector based on MCap or Market capitalization. Higher the market capitalization of a company, higher the rank it is assigned.

    • Price to Book represents the ratio of current market price of a stock to its book value per share. The book value itself is arrived at by dividing the net worth of a company by the total number of shares outstanding of the company at that time.

    • Dividend Yield calculates the amount of full year dividend declared by a company as a percentage of the current market price of a stock. All other things being equal, higher the dividend yield of the stock, the better it is for investors.

    • Face value of a stock is the value ascribed to the stock as per the balance sheet of the company. The dividend declared by a company is usually declared as a percentage of face value.

    • Beta (β) is a measure of systematic risk. It describes the responsiveness of a stock to fluctuations in the market. Beta coefficient of more than 1 denotes that a security is more volatile than its benchmark and less than 0 signifies that security return is not correlated to market movement.

    • Volume Weighted Average Price represents the average price of a security over a particular time period (example one trading day) weighted by the volume traded at each price point.

    • This represents the 52 week high and low price of the security. It is also the 1 year high and low of the security. This represents the highest and lowest price touched by the security during the past 52 weeks or 1 year including today.

    • Book value represents the value arrived at by subtracting the total liabilities from the total assets of the company. On dividing this value with the total number of shares outstanding for the company, we can arrive at book value per share. Book value is also known as Net Asset Value of a company.

    • This is a ratio of market capitalisation of a company’s stock to its annual sales. The market capitalization here is taken for the fully paid-up equity share of the company.

    Technicals

    • Lorem Ipsum is simply dummy text of the printing and typesetting industry. Lorem Ipsum has been the industry's standard dummy text ever since the 1500s, when an unknown printer took a galley of type and scrambled it to make a type specimen book. It has survived not only five centuries, but also the leap into electronic typesetting, remaining essentially unchanged. It was popularised in the 1960s with the release of Letraset sheets containing Lorem Ipsum passages, and more recently with desktop publishing software like Aldus PageMaker including versions of Lorem Ipsum.

      Lorem Ipsum is simply dummy text of the printing and typesetting industry. Lorem Ipsum has been the industry's standard dummy text ever since the 1500s, when an unknown printer took a galley of type and scrambled it to make a type specimen book. It has survived not only five centuries, but also the leap into electronic typesetting, remaining essentially unchanged. It was popularised in the 1960s with the release of Letraset sheets containing Lorem Ipsum passages, and more recently with desktop publishing software like Aldus PageMaker including versions of Lorem Ipsum.

    • Lorem Ipsum is simply dummy text of the printing and typesetting industry. Lorem Ipsum has been the industry's standard dummy text ever since the 1500s, when an unknown printer took a galley of type and scrambled it to make a type specimen book. It has survived not only five centuries, but also the leap into electronic typesetting, remaining essentially unchanged. It was popularised in the 1960s with the release of Letraset sheets containing Lorem Ipsum passages, and more recently with desktop publishing software like Aldus PageMaker including versions of Lorem Ipsum.

      Lorem Ipsum is simply dummy text of the printing and typesetting industry. Lorem Ipsum has been the industry's standard dummy text ever since the 1500s, when an unknown printer took a galley of type and scrambled it to make a type specimen book. It has survived not only five centuries, but also the leap into electronic typesetting, remaining essentially unchanged. It was popularised in the 1960s with the release of Letraset sheets containing Lorem Ipsum passages, and more recently with desktop publishing software like Aldus PageMaker including versions of Lorem Ipsum.

    • Lorem Ipsum is simply dummy text of the printing and typesetting industry. Lorem Ipsum has been the industry's standard dummy text ever since the 1500s, when an unknown printer took a galley of type and scrambled it to make a type specimen book. It has survived not only five centuries, but also the leap into electronic typesetting, remaining essentially unchanged. It was popularised in the 1960s with the release of Letraset sheets containing Lorem Ipsum passages, and more recently with desktop publishing software like Aldus PageMaker including versions of Lorem Ipsum.

      Lorem Ipsum is simply dummy text of the printing and typesetting industry. Lorem Ipsum has been the industry's standard dummy text ever since the 1500s, when an unknown printer took a galley of type and scrambled it to make a type specimen book. It has survived not only five centuries, but also the leap into electronic typesetting, remaining essentially unchanged. It was popularised in the 1960s with the release of Letraset sheets containing Lorem Ipsum passages, and more recently with desktop publishing software like Aldus PageMaker including versions of Lorem Ipsum.

    • Pivot points are indicative support and resistance levels which are calculated on basis of previous day’s high, low and closing prices. Pivot level for Monday’s trade would be based on Friday’s prices and Monday’s, high, low and close price would go into calculation of pivot levels for Tuesday’s trading session.

      There are two underlying assumptions in pivot points. First, the specific price level indicated by R1, R2 and R3 may act as a barrier or resistance in an uptrend. So, if a stock moves up above these pivots levels, the uptrend gets confirmed. Second these specific price levels may see an increased activity, hence may be used as levels to book profit by traders with a long positions. For traders with short position, these points are often helpful in determining what should be the stop loss for a trade.

      Similarly, in case of support levels as indicated by S1, S2 and S3, they may act as price level where a stock might get a breather when it is slipping southward. In case these supports levels are broken it is a confirmation of a down trend. The stock may also see increased activity close to pivot levels. They may be used by trader may use them to put stop loss for a long trade. If a trader has short position, the pivot level may help in determine a level, where profit may be booked.

      Like any other technical indicator, pivots levels cannot and should not be used as single factor while taking a trading decision. They should be combined with other technical indicators. It could be short term moving averages, stochastic, moving average convergence divergence (MACD) or overbought level as indicated by relative strength index (RSI). For example, if a breakdown of support level (S1, S2 or S3) is accompanied with stock price also moving below its short term moving average or stochastic on daily charts giving a sell signal, it would add to weightage to the decision of taking a short trade.