SubscribeGet APP
Oil And Natural Gas Corporation Ltd.
  • Overview
  • News
  • Financials
  • Technicals
  • Peers
  • Shareholdings
  • MF
  • F&O
  • Corporate Actions
  • About

Oil And Natural Gas Corporation Ltd.

  • 91.35-1.40 (-1.51%)
  • Closed
  • As On: 04:04 PM IST
  • Open93.05
  • High93.75
  • Low90.00
  • Prev Close92.75
  • Volume2,85,22,112
  • VWAP(₹)91.38
  • Oil-price trouble

    The average oil price was far below the comfort zone of US dollar 40 to 45 for the company. Though they have inched upward recently, sustainability at higher levels when global economic growth is sluggish remains a risk.
  • Old oil fields

    Given the fact that ONGC’s oil wells are very old, it is unlikely that it can reduce its cost of production beyond a level. In gas production the wells are new. But the gas pricing formula ensures that margins don’t go beyond a point. The realisation from gas would impact the company as prices have been revised downward from October.
  • ONGC and macro scene

    A low global oil price is good for the fiscal deficit of the country as high prices lead to a higher import bill. So, in a way, ONGC not doing well is probably a signal that the macro scenario does not pose a major risk.
  • ONGC Videsh - not so vishesh

    ONGC-operated domestic fields account for the bulk of oil and gas production -- 63 per cent and 80 per cent, respectively. Rest of the production came by way of joint venture of ONGC Videsh, where the production saw of a dip in the first quarter of the current fiscal.

Found Insights useful?

Key Metrics

  • PE Ratio(x)36.26
  • EPS - TTM(₹)2.52
  • MCap(₹ Cr.)1,14,921
  • MCap Rank1
  • PB Ratio(x)0.52
  • Div Yield(%)5.47
  • Face Value(₹)5.00
  • 52W High(₹)119.80
  • 52W Low(₹)50.00
  • MCap/Sales0.22
  • Beta(1 Month)0.59
  • BV/Share(₹)178.68

Returns

  • 1 Day-1.51%
  • 1 Month-1.93%
  • 3 Months32.39%
  • 1 Year-22.81%
  • 3 Years-56.19%
  • 5 Years-37.62%

Financials

    • Topline Contraction

      Sales de-grew by 5.63%. Company witnessed revenue contraction for the first time in last 3 years. (Source: Consolidated Financials)
    • Employee & Interest Expense

      Company has spent 1.76% of its operating revenues towards interest expenses and 3.91% towards employee cost in the year ending Mar 31, 2020. (Source: Consolidated Financials)
    Sep 2020Jun 2020Mar 2020Dec 2019Sep 2019
    Total Income85,577.8563,575.471,08,014.321,11,187.831,03,236.60
    Total Income Growth (%)34.61-41.14-2.857.70-7.09
    Total Expenses76,611.5759,504.711,16,650.551,01,302.3892,280.63
    Total Expenses Growth (%)28.75-48.9915.159.78-6.29
    EBIT8,966.284,070.76-8,636.239,885.4510,955.97
    EBIT Growth (%)120.26--187.36-9.77-13.33
    PAT4,335.31119.75-6,189.444,903.685,275.51
    PAT Growth (%)3,520.30--226.22-7.05-21.19
    EBIT Margin (%)10.486.40-8.008.8910.61
    Net Profit Margin (%)5.070.19-5.734.415.11
    Basic EPS (₹)3.450.10-4.923.904.19
    Sep 2020Jun 2020Mar 2020Dec 2019Sep 2019
    Total Income19,152.5913,448.1122,781.8425,112.5527,177.95
    Total Income Growth (%)42.42-40.97-9.28-7.60-0.46
    Total Expenses14,845.3612,052.7625,804.3818,487.6217,457.89
    Total Expenses Growth (%)23.17-53.2939.585.90-0.80
    EBIT4,307.231,395.35-3,022.546,624.939,720.06
    EBIT Growth (%)208.68--145.62-31.840.17
    PAT2,877.84495.97-3,098.264,151.636,263.13
    PAT Growth (%)480.24--174.63-33.716.08
    EBIT Margin (%)22.4910.38-13.2726.3835.76
    Net Profit Margin (%)15.033.69-13.6016.5323.04
    Basic EPS (₹)2.290.39-2.463.304.98
    FY 2020FY 2019FY 2018FY 2017FY 2016
    Total Revenue4,05,334.464,29,534.053,30,173.902,91,829.291,43,809.01
    Total Revenue Growth (%)-5.6330.0913.14102.93-13.81
    Total Expenses3,78,292.253,76,604.162,93,927.652,53,512.751,16,679.23
    Total Expenses Growth (%)0.4528.1315.94117.27-16.16
    Profit after Tax (PAT)10,907.1530,494.9622,105.9324,419.2512,875.21
    PAT Growth (%)-64.2337.95-9.4789.66-29.77
    Operating Profit Margin (%)8.5713.9412.7814.8322.77
    Net Profit Margin (%)2.747.236.858.649.49
    Basic EPS (₹)8.6723.8117.2319.0310.03
    FY 2020FY 2019FY 2018FY 2017FY 2016
    Total Revenue1,02,270.871,17,128.4392,846.6385,374.8284,552.08
    Total Revenue Growth (%)-12.6826.158.750.97-4.18
    Total Expenses77,003.1377,174.4163,954.1560,159.3157,726.65
    Total Expenses Growth (%)-0.2220.676.314.21-5.83
    Profit after Tax (PAT)13,444.5426,715.7919,945.2617,899.9816,139.93
    PAT Growth (%)-49.6833.9511.4310.90-8.98
    Operating Profit Margin (%)29.2138.7235.7834.0236.30
    Net Profit Margin (%)13.9824.3723.4723.0320.81
    Basic EPS (₹)10.6920.8615.5413.9512.58

    All figures in Rs Cr, unless mentioned otherwise

  • AnnualFY 2020FY 2019FY 2018FY 2017FY 2016
    Total Assets5,03,898.074,95,702.054,60,234.944,45,397.483,42,585.63
    Total Assets Growth (%)1.657.713.3330.011.45
    Total Liabilities2,79,117.562,59,455.082,40,610.002,37,720.291,42,120.18
    Total Liabilities Growth (%)7.587.831.2267.27-8.16
    Total Equity2,24,780.512,36,246.972,19,624.932,07,677.192,00,465.45
    Total Equity Growth (%)-4.857.575.753.609.59
    Current Ratio (x)0.690.700.620.641.13
    Total Debt to Equity (x)0.500.470.500.380.23
    Contingent Liabilities1,48,257.291,84,190.1591,848.9340,773.6372,742.35
    AnnualFY 2020FY 2019FY 2018FY 2017FY 2016
    Total Assets2,96,680.753,02,234.812,91,228.182,47,249.492,21,876.85
    Total Assets Growth (%)-1.843.7817.7911.446.63
    Total Liabilities1,02,342.6699,242.2697,843.5061,711.1156,102.17
    Total Liabilities Growth (%)3.121.4358.5510.00-11.62
    Total Equity1,94,338.092,02,992.561,93,384.681,85,538.381,65,774.68
    Total Equity Growth (%)-4.264.974.2311.9214.64
    Current Ratio (x)0.670.610.441.551.72
    Total Debt to Equity (x)0.070.110.130.000.00
    Contingent Liabilities95,668.0293,825.4270,218.6257,540.1372,286.86

    All figures in Rs Cr, unless mentioned otherwise

    • Increase in Cash from Investing

      Company has used Rs 53498.31 cr for investing activities which is an YoY increase of 56.58%. (Source: Consolidated Financials)
    AnnualFY 2020FY 2019FY 2018FY 2017FY 2016
    Net Cash flow from Operating Activities71,634.3861,248.4656,792.0945,780.4846,292.49
    Net Cash used in Investing Activities-53,498.31-34,167.44-67,111.22-45,056.05-38,282.75
    Net Cash flow from Financing Activities-17,767.76-25,995.879,909.36-1,867.05-8,972.00
    Net Cash Flow707.571,285.23-96.6998.87-935.38
    Closing Cash & Cash Equivalent1,663.671,239.86-45.3751.311,832.33
    Closing Cash & Cash Equivalent Growth (%)34.18-2,832.72-188.42-97.20-85.90
    Total Debt/ CFO (x)1.451.671.781.630.96
    AnnualFY 2020FY 2019FY 2018FY 2017FY 2016
    Net Cash flow from Operating Activities57,785.2542,252.0137,536.8532,787.6639,893.85
    Net Cash used in Investing Activities-34,958.27-22,019.85-53,730.38-21,303.50-32,682.71
    Net Cash flow from Financing Activities-22,747.10-20,245.6116,180.47-11,455.43-7,315.75
    Net Cash Flow79.88-13.46-13.0628.73-104.61
    Closing Cash & Cash Equivalent96.0316.1429.6042.6613.93
    Closing Cash & Cash Equivalent Growth (%)494.80-45.46-30.61206.30-99.50
    Total Debt/ CFO (x)0.240.510.680.000.00

    All figures in Rs Cr, unless mentioned otherwise

  • AnnualFY 2020FY 2019FY 2018FY 2017FY 2016
    Return on Equity (%)5.2613.9710.8312.566.50
    Return on Capital Employed (%)8.8116.0212.0113.0410.61
    Return on Assets (%)2.166.154.805.483.75
    Interest Coverage Ratio (x)4.8610.078.2511.678.20
    Asset Turnover Ratio (x)78.7485.0070.1163.4239.60
    Price to Earnings (x)7.886.5810.339.7314.29
    Price to Book (x)0.420.921.121.220.93
    EV/EBITDA (x)3.323.815.285.024.36
    EBITDA Margin (%)15.2919.6419.9421.9934.85
    AnnualFY 2020FY 2019FY 2018FY 2017FY 2016
    Return on Equity (%)6.9113.1610.319.649.73
    Return on Capital Employed (%)10.9616.6112.5611.5913.79
    Return on Assets (%)4.538.836.847.237.27
    Interest Coverage Ratio (x)9.9517.0320.1521.6421.26
    Asset Turnover Ratio (x)32.4136.2629.1731.4234.94
    Price to Earnings (x)6.397.5211.4413.2811.39
    Price to Book (x)0.440.991.181.281.11
    EV/EBITDA (x)2.123.815.635.904.43
    EBITDA Margin (%)48.5753.1252.8149.7150.61
    • Environment, Sustainability and Governance (ESG) - a new road block ?

      Furthermore, in global capital markets more and more fund houses and investors are employing the Environment, Sustainability and Governance (ESG) criteria in making investment decisions. This is an area of action for most E&P players as even to support a very modest level of demand growth, capital requirements for the sector are substantial. BlackRock, the world’s largest fund manager, recently announced sustainability and climate-risk will be important parameters for deciding all future investments in energy domain, effectively pressuring companies in carbon-intensive businesses to double down on emissions

    • Price realization trends

      Crude Oil price of the Indian basket averaged USD 60.47 per barrel (` 4,286 per barrel) during FY’20 compared to USD 69.88 per barrel (` 4,884 per barrel) in the previous fiscal (FY’19). The intra-year drop in crude prices – from USD 71/bbl in April 2019 to USD 33.36/bbl in March 2020 – on the back of COVID-19 is steeper than that in FY’15 in percentage terms.

    • Higher dependency on government

      In light of this distressing business scenario, your Company is pursuing with the Government for possible remedies by way of cess and royalty exemptions/concessions/rationalizations, which if agreed upon, will ease the impending liquidity pain to a large extent.

Found Financials useful?

Technicals

  • 20 Day EMA Crossover

    Bearish signal on daily chart

    Appeared on: 21 Jan 2021

    20D EMA: 97.53

    Last Signal 18 Jan 2021 (Loss 0.88%)

    Average price decline of -2.85% within 7 days of Bearish signal in last 5 years

  • 44%
    Positive Movement
    since 1st Jan 2005
    on basis
    55%
    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

  • R193.32Pivot

    92.03

    S190.32
    R295.03S289.03
    R398.03S386.03
  • 5 Days14 Days28 Days
    3.703.763.56

Found Technicals useful?

Peers

    • Stock Returns vs Nifty 100

      Stock gave a 3 year return of -55.52% as compared to Nifty 100 which gave a return of 25.94%. (as of last trading session)
    • Stock Returns vs Nifty Energy

      Stock generated -55.52% return as compared to Nifty Energy which gave investors 18.99% 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 -55.52% as compared to Nifty 100 which gave a return of 25.94%. (as of last trading session)
    • Stock Returns vs Nifty Energy

      Stock generated -55.52% return as compared to Nifty Energy which gave investors 18.99% return over 3 year time period. (as of last trading session)
    NAMEP/E (x)P/B (x)ROE %ROCE %ROA %Rev CAGR [3Yr]OPMNPMBasic EPSCurrent RatioTotal Debt/ Equity (x)Total Debt/ CFO (x)
    ONGC36.260.515.268.812.1611.458.572.648.670.690.501.45
    Oil India Ltd4.410.4213.226.177.416.5623.2420.5335.191.760.442.39
    Hind Oil Expl11.961.5620.2314.2313.2870.0157.8867.8210.461.250.070.14
    Selan Expl Tech22.470.596.8410.855.7015.4346.2425.0414.6418.060.000.03
    Add More
    Annual Ratios (%)

    Choose from Peers

      Choose from Stocks

      Found Peer Comparison useful?

      Shareholding Patterns

      • Category31 Dec 202030 Sep 202030 Jun 202031 Mar 2020
        Promoters60.4160.4160.4160.41
        Pledge0.000.000.000.00
        FII7.677.698.107.62
        DII17.7117.5317.3717.88
        Mutual Funds5.936.096.066.95
        Others14.2114.3714.1214.09
      • CategoryNo. of SharesPercentage% Change QoQ
        Promoters7,59,96,08,45860.41 %0.00
        Pledge00.00 %0.00
        FII96,46,20,5077.67 %-0.02
        DII2,22,86,58,34917.71 %0.18
        MF74,61,05,7025.93 %-0.16
        Others1,78,73,91,89214.21 %-0.16

      Mutual Funds Ownership

      MF Ownership as on 31 December 2020

      Futures & Options

        • Expiry Month
        DatePrice

        27-09-2020Current

        91.65-1.05 (-1.13%)

        93.00
        Open
        93.80
        High
        89.80
        Low
        92.70
        Prev Close
        6,847
        Contracts Traded
        23,455.66
        Turnover (₹ Lakhs)
        • Type
        • Expiry Month
        • Strike Price
        DatePrice

        27-09-2020Current

        0.00-17.05 (-100.00%)

        0.00
        Open
        0.00
        High
        0.00
        Low
        17.05
        Close
        0
        Contracts Traded
        0.00
        Turnover (₹ Lakhs)

      Corporate Actions

      • Board Meeting

        Quarterly Results

        Nov 05, 2020

        Board Meeting

        Others

        Oct 16, 2020

        General Meeting

        -

        Sep 14, 2020

      • Announced onMeeting on
        Nov 05, 2020Nov 13, 2020
        Quarterly Results
        Oct 16, 2020Oct 21, 2020
        Others
        Aug 25, 2020Sep 01, 2020
        Quarterly Results
        Jun 23, 2020Jun 30, 2020
        Audited Results & Final Dividend
        Mar 11, 2020Mar 16, 2020
        Interim Dividend
      • Announced onEx-DateDividend%
        Feb 28, 2020Mar 23, 2020100%
        May 30, 2019Aug 22, 201915%
        Mar 19, 2019Mar 26, 201920%
        Feb 04, 2019Feb 28, 2019105%
        Oct 30, 2018-0%
      • Announced onEx-Date
        Oct 27, 2016Dec 15, 2016
        Bonus Ratio: 1 share(s) for every 2 shares held
        Dec 16, 2010Feb 08, 2011
        Bonus Ratio: 1 share(s) for every 1 shares held
        Jul 26, 2006Oct 27, 2006
        Bonus Ratio: 1 share(s) for every 2 shares held
      • Announced onEx-Date
        Dec 16, 2010Feb 08, 2011
        Split: Old FV10.0| New FV:5.0
      • No Data Available

      • Announced onMeeting on
        Sep 14, 2020Oct 09, 2020
        -
        Aug 05, 2019Aug 30, 2019
        -
        Sep 05, 2018Sep 28, 2018
        -
        Feb 26, 2018Mar 29, 2018
        -
        Dec 20, 2018-
        Buy Back of Shares

      About

      Oil And Natural Gas Corporation Ltd., incorporated in the year 1993, is a Large Cap company (having a market cap of Rs 114920.85 Crore) operating in Gas & Petroleum sector.

      Oil And Natural Gas Corporation Ltd. key Products/Revenue Segments include Oil Crude which contributed Rs 64836.31 Crore to Sales Value (67.38 % of Total Sales), Gas Natural which contributed Rs 19355.59 Crore to Sales Value (20.11 % of Total Sales), Naphtha which contributed Rs 3986.31 Crore to Sales Value (4.14 % of Total Sales), Ethane which contributed Rs 1293.69 Crore to Sales Value (1.34 % of Total Sales), C2/C3 (Ethane/Propane) which contributed Rs 815.54 Crore to Sales Value (0.84 % of Total Sales), Propane which contributed Rs 725.12 Crore to Sales Value (0.75 % of Total Sales), Other Operating Revenue which contributed Rs 421.08 Crore to Sales Value (0.43 % of Total Sales), Butane which contributed Rs 420.77 Crore to Sales Value (0.43 % of Total Sales), Superior Kerosene Oil which contributed Rs 246.50 Crore to Sales Value (0.25 % of Total Sales), HSD which contributed Rs 239.00 Crore to Sales Value (0.24 % of Total Sales), Aviation Turbine Fuel (ATF) which contributed Rs 88.93 Crore to Sales Value (0.09 % of Total Sales), LSHS which contributed Rs 74.66 Crore to Sales Value (0.07 % of Total Sales), Electricity which contributed Rs 66.84 Crore to Sales Value (0.06 % of Total Sales), Processing Charges which contributed Rs 24.29 Crore to Sales Value (0.02 % of Total Sales), Mineral Turpentine Oil (MTO) which contributed Rs 15.20 Crore to Sales Value (0.01 % of Total Sales)for the year ending 31-Mar-2020.

      For the quarter ended 30-09-2020, the company has reported a Consolidated sales of Rs 83619.16 Crore, up 33.80 % from last quarter Sales of Rs 62496.06 Crore and down -17.66 % from last year same quarter Sales of Rs 101554.26 Crore Company has reported net profit after tax of Rs 5150.65 Crore in latest quarter.

      The company’s top management includes Dr.Alka Mittal, Mr.Subhash Kumar, Mr.Shashi Shanker, Mr.Sanjay Kumar Moitra, Mr.Rajesh Kumar Srivastava, Mr.Rajesh Kakkar, Mr.Navin Chandra Pandey, Mr.Amitava Bhattacharyya, Mr.Amar Nath, Mrs.Ganga Murthy. Company has Kalani & Co. as its auditors. As on 31-12-2020, the company has a total of 12,580,279,206 shares outstanding.

      About ONGC

      Oil And Natural Gas Corporation Ltd., incorporated in the year 1993, is a Large Cap company (having a market cap of Rs 114920.85 Crore) operating in Gas & Petroleum sector. Show More

      Key Indices Listed On

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

      Address

      Plot No. 5A- 5B,Nelson Mandela Road,Vasant Kunj,New Delhi, Delhi - 110070

      Executive Leadership

      AM

      Alka Mittal

      Director - Human Resources
      AN

      Amar Nath

      Government Nominee Director
      AB

      Amitava Bhattacharyya

      Independent Director
      GM

      Ganga Murthy

      Independent Director
      Show More

      Auditors

      R Gopal & Associates
      G M Kapadia & Co
      S A R C & Associates
      M K P S & Associates

      ONGC Share Price Update

      Oil And Natural Gas Corporation Ltd. share price moved down by -1.51% from its previous close of Rs 92.75. Oil And Natural Gas Corporation Ltd. stock last traded price is 91.35

      Share PriceValue
      Today/Current/Last91.35
      Previous Day92.75

      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).

      DISCLAIMER: Any and all content on this website including tools/analysis is provided to you only for convenience and on an “as-is, as- available” basis without representation and warranties of any kind. The content and any output of such tools/analysis is for informational purposes only and should not be relied upon or construed as an investment advice or guarantee for any specific performance/returns advice or considered as recommendation for the purchase or sale of any security or investment. You are advised to exercise caution, discretion and independent judgment with regards to the same and seek advice from professionals and certified experts before taking any decisions.

      By using this site, you agree to the Terms of Service and Privacy Policy.

      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.