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Bajaj Finance Ltd.
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  • News
  • Financials
  • Technicals
  • Peers
  • Shareholdings
  • MF
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  • About

Bajaj Finance Ltd.

  • 5,264.90-265.05 (-4.79%)
  • Closed
  • As On: 26 Feb, 2021, 03:59 PM IST
OPEN TRADING A/C
  • Open5,430.00
  • High5,454.00
  • Low5,221.00
  • Prev Close5,529.95
  • Volume37,13,326
  • VWAP(₹)5,307.78
  • Advantage of cross-selling

    With a large customer base, BFL has a big opportunity to cross-sell its loan and non-loan products to a single customer, keeping marketing costs under control and margins healthy.
  • Q3 – Asset quality concerns

    Had the company classified borrowers accounts after 31st August 2020, there would have divergence in reported gross NPA for Q3 of FY-21 (0.55 %) and possible gross NPA (2.86%),. This divergence indicates toward inherent risk in retail lending space and some specific segments like auto financing, which needs to be plugged.
  • Trial by fire

    If the company is able to sustain its asset quality when the Covid dust settles down without the need for raising funds in the near term, it would be able to justify its premium valuations.
  • Large franchise base

    With its presence in 1,134 locations and close to 90,000 distribution points, BAL is well placed to tap the recovery in consumer discretionary spending. The only thing to watch out for in the near term is how its SME portfolio would perform in Covid’s aftermath.

Found Insights useful?

Key Metrics

  • PE Ratio(x)78.89
  • EPS - TTM(₹)66.73
  • MCap(₹ Cr.)3,15,970
  • MCap Rank2
  • PB Ratio(x)10.31
  • Div Yield(%)0.19
  • Face Value(₹)2.00
  • 52W High(₹)5,822.20
  • 52W Low(₹)1,783.00
  • MCap/Sales5.04
  • Beta(1 Month)2.30
  • BV/Share(₹)536.48

Returns

  • 1 Day-4.79%
  • 1 Month7.26%
  • 3 Months9.2%
  • 1 Year9.46%
  • 3 Years214.33%
  • 5 Years806.42%

Bajaj Finance Recommendations

No Recent Recos Available

Financials

  • Dec 2020Sep 2020Jun 2020Mar 2020Dec 2019
    Total Income6,658.476,523.296,649.747,230.837,025.93
    Total Income Growth (%)2.07-1.90-8.042.9211.12
    Total Expenses2,741.282,859.682,842.423,405.232,366.83
    Total Expenses Growth (%)-4.140.61-16.5343.8719.74
    EBIT3,917.193,663.613,807.323,825.604,659.10
    EBIT Growth (%)6.92-3.77-0.48-17.897.21
    Profit after Tax (PAT)1,145.98964.88962.32948.101,614.11
    PAT Growth (%)18.770.271.50-41.267.16
    EBIT Margin (%)58.8356.1657.2652.9166.31
    Net Profit Margin (%)17.2114.7914.4713.1122.97
    Basic EPS (₹)19.0816.0716.0415.8027.32
    Dec 2020Sep 2020Jun 2020Mar 2020Dec 2019
    Total Income5,847.675,789.825,901.736,515.166,318.50
    Total Income Growth (%)1.00-1.90-9.423.1110.90
    Total Expenses2,555.662,736.172,732.993,254.012,267.61
    Total Expenses Growth (%)-6.600.12-16.0143.5020.28
    EBIT3,292.013,053.653,168.743,261.154,050.89
    EBIT Growth (%)7.81-3.63-2.83-19.506.26
    Profit after Tax (PAT)1,048.58876.58869.50891.571,488.15
    PAT Growth (%)19.620.81-2.48-40.098.10
    EBIT Margin (%)56.3052.7453.6950.0564.11
    Net Profit Margin (%)17.9315.1414.7313.6823.55
    Basic EPS (₹)17.4514.6014.4914.8625.19
    FY 2020FY 2019FY 2018FY 2017FY 2016
    Total Revenue26,385.6318,500.1813,465.919,992.197,383.66
    Total Revenue Growth (%)42.6237.3934.7635.3336.27
    Total Expenses19,063.5112,321.029,369.717,174.785,418.98
    Total Expenses Growth (%)54.7231.5030.5932.4033.43
    Profit after Tax (PAT)5,263.753,994.992,674.111,836.381,278.63
    PAT Growth (%)31.7649.4045.6243.6242.41
    Operating Profit Margin (%)63.6869.2564.9466.4366.96
    Net Profit Margin (%)19.9521.6019.8918.4217.50
    Basic EPS (₹)89.7769.3347.5434.01242.32
    FY 2020FY 2019FY 2018FY 2017FY 2016
    Total Revenue23,834.1517,399.2713,329.229,988.977,383.48
    Total Revenue Growth (%)36.9830.5333.4435.2936.27
    Total Expenses17,026.0211,363.979,272.867,171.455,418.91
    Total Expenses Growth (%)49.8222.5529.3032.3433.43
    Profit after Tax (PAT)4,881.123,890.342,646.701,836.551,278.52
    PAT Growth (%)25.4746.9944.1143.6542.39
    Operating Profit Margin (%)61.5668.8765.0366.4566.96
    Net Profit Margin (%)20.4822.3719.9118.4317.50
    Basic EPS (₹)83.2567.5247.0534.01242.30

    All figures in Rs Cr, unless mentioned otherwise

    Insights
    • Employee & Interest Expense

      Company has spent 35.92% of its operating revenues towards interest expenses and 9.67% towards employee cost in the year ending Mar 31, 2020. (Source: Consolidated Financials)
  • AnnualFY 2020FY 2019FY 2018FY 2017FY 2016
    Total Assets1,64,391.371,24,232.5186,824.3463,730.5146,456.60
    Total Assets Growth (%)32.3343.0836.2437.1841.59
    Total Liabilities1,32,063.741,04,535.4970,278.6954,130.2539,029.84
    Total Liabilities Growth (%)26.3348.7429.8338.6939.33
    Total Equity32,327.6319,697.0216,545.659,600.267,426.76
    Total Equity Growth (%)64.1219.0572.3529.2754.73
    Current Ratio (x)2.873.061.661.551.57
    Total Debt to Equity (x)4.025.163.424.384.99
    Contingent Liabilities5,403.652,143.891,447.321,462.75212.78
    AnnualFY 2020FY 2019FY 2018FY 2017FY 2016
    Total Assets1,38,003.571,08,499.8783,629.0263,730.4446,456.52
    Total Assets Growth (%)27.1929.7431.2237.1841.59
    Total Liabilities1,06,190.3688,936.2467,110.7354,130.1339,029.88
    Total Liabilities Growth (%)19.4032.5223.9838.6939.34
    Total Equity31,813.2119,563.6316,518.299,600.317,426.64
    Total Equity Growth (%)62.6118.4472.0629.2754.73
    Current Ratio (x)1.2849.121.641.531.57
    Total Debt to Equity (x)3.284.413.254.384.99
    Contingent Liabilities4,886.141,997.941,432.741,462.29216.09

    All figures in Rs Cr, unless mentioned otherwise

  • AnnualFY 2020FY 2019FY 2018FY 2017FY 2016
    Net Cash flow from Operating Activities-24,426.18-29,061.53-20,461.39-10,438.95-9,791.88
    Net Cash used in Investing Activities-8,756.88-5,378.93971.17-3,046.76-764.61
    Net Cash flow from Financing Activities34,180.5634,449.3119,503.2812,513.4311,656.20
    Net Cash Flow997.508.8513.06-972.281,099.71
    Closing Cash & Cash Equivalent1,344.52347.02337.97324.911,327.52
    Closing Cash & Cash Equivalent Growth (%)287.452.684.02-75.53-
    Total Debt/ CFO (x)-5.31-3.50-2.77-4.03-3.78
    AnnualFY 2020FY 2019FY 2018FY 2017FY 2016
    Net Cash flow from Operating Activities-14,126.87-15,775.70-17,091.82-10,439.98-9,793.16
    Net Cash used in Investing Activities-9,632.54-6,637.58405.49-3,048.24-763.57
    Net Cash flow from Financing Activities24,193.9422,425.9516,588.9512,515.9411,656.20
    Net Cash Flow434.5312.67-97.38-972.281,099.47
    Closing Cash & Cash Equivalent674.53240.00227.24324.621,327.23
    Closing Cash & Cash Equivalent Growth (%)181.055.62-30.00-75.54504.22
    Total Debt/ CFO (x)-7.38-5.47-3.14-4.03-3.78

    All figures in Rs Cr, unless mentioned otherwise

    Insights
    • Increase in Cash from Investing

      Company has used Rs 8756.88 cr for investing activities which is an YoY increase of 62.8%. (Source: Consolidated Financials)
  • AnnualFY 2020FY 2019FY 2018FY 2017FY 2016
    Return on Equity (%)16.2820.2816.1619.1217.21
    Return on Capital Employed (%)15.5515.2113.6214.9514.64
    Return on Assets (%)3.203.213.072.882.75
    Interest Coverage Ratio (x)1.771.931.881.741.67
    Asset Turnover Ratio (x)16.0414.8815.4815.6315.72
    Price to Earnings (x)25.3243.8638.1734.9729.07
    Price to Book (x)4.118.866.156.695.00
    EV/EBITDA (x)15.2921.3017.9015.8314.71
    EBITDA Margin (%)64.7970.0365.7067.1467.73
    AnnualFY 2020FY 2019FY 2018FY 2017FY 2016
    Return on Equity (%)15.3419.8816.0219.1317.21
    Return on Capital Employed (%)45.3811.2614.0914.9514.64
    Return on Assets (%)3.533.583.162.882.75
    Interest Coverage Ratio (x)1.872.021.881.741.67
    Asset Turnover Ratio (x)17.2616.0215.8815.6315.72
    Price to Earnings (x)27.2545.0538.4634.9729.07
    Price to Book (x)4.188.926.166.695.00
    EV/EBITDA (x)15.8321.5217.7615.8314.71
    EBITDA Margin (%)62.6969.6665.7967.1667.73

Found Financials useful?

Technicals

  • Stochastic Crossover

    Bearish signal on weekly chart

    Appeared on: 26 Feb 2021

    Region: Equlibrium

    Last Signal 8 Jan 2021 (Loss -8.18%)

    Average price decline of -6.06% within 7 weeks of Bearish signal in last 10 years

    5 Day EMA Crossover

    Bearish signal on daily chart

    Appeared on: 26 Feb 2021

    5D EMA: 5429.67

    Last Signal 18 Feb 2021 (Loss -4.11%)

    Average price decline of -2.96% within 7 days of Bearish signal in last 5 years

    10 Day EMA Crossover

    Bearish signal on daily chart

    Appeared on: 26 Feb 2021

    10D EMA: 5463.99

    Last Signal 19 Feb 2021 (Loss -2.97%)

    Average price decline of -2.75% within 7 days of Bearish signal in last 5 years

    14 Day EMA Crossover

    Bearish signal on daily chart

    Appeared on: 26 Feb 2021

    14D EMA: 5452.64

    Last Signal 22 Feb 2021 (Loss -0.50%)

    Average price decline of -2.77% within 7 days of Bearish signal in last 5 years

    20 Day EMA Crossover

    Bearish signal on daily chart

    Appeared on: 26 Feb 2021

    20D EMA: 5414.48

    Last Signal 22 Feb 2021 (Loss -0.50%)

    Average price decline of -3.01% within 7 days of Bearish signal in last 5 years

    Heikin-Ashi Changeover

    Bearish indication on daily chart

    • Prev. Close Price

      5342.48

    • LTP

      5264.90

    Formed on: 26 Feb 2021

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

  • 48%
    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

  • R15405.60Pivot

    5313.30

    S15172.60
    R25546.30S25080.30
    R35779.30S34847.30
  • 5 Days14 Days28 Days
    192.63183.66175.70

Found Technicals useful?

Peers

  • NAMEP/E (x)P/B (x)ROE %ROCE %ROA %Rev CAGR [3Yr]OPMNPMBasic EPSCurrent RatioTotal Debt/ Equity (x)Total Debt/ CFO (x)
    Bajaj Finance78.899.8116.2815.553.2037.7763.6819.9589.772.874.02-5.31
    M&M Financial31.792.098.9815.531.3118.3558.458.7517.482.175.48-21.07
    IndiabullsVentures-56.023.950.1114.400.0377.9428.361.430.071.691.380.85
    Add More
    Annual Ratios (%)

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      Insights
      • Stock Returns vs Nifty 100

        Stock gave a 3 year return of 220.98% as compared to Nifty 100 which gave a return of 34.28%. (as of last trading session)
      • Stock Returns vs Nifty Financial Services

        Stock generated 220.98% return as compared to Nifty Financial Services which gave investors 52.3% return over 3 year time period. (as of last trading session)

      Found Peer Comparison useful?

      Shareholding Patterns

      • CategoryNo. of SharesPercentage% Change QoQ
        Promoters33,81,69,04556.12 %0.00
        Pledge00.00 %0.00
        FII15,19,64,49725.22 %2.09
        DII4,66,30,0027.74 %-1.15
        MF3,76,58,2736.25 %-0.85
        Others6,58,23,79510.92 %-0.94
      • Category31 Dec 202030 Sep 202030 Jun 202031 Mar 2020
        Promoters56.1256.1256.2056.20
        Pledge0.000.000.000.00
        FII25.2223.1321.4821.34
        DII7.748.899.8810.71
        Mutual Funds6.257.107.268.08
        Others10.9211.8612.4411.75

      Mutual Funds Ownership

      MF Ownership as on 31 January 2021

      Futures & Options

        • Type
        • Expiry Month
        • Strike Price
        DatePrice

        27-09-2020Current

        0.00-1,965.40 (-100.00%)

        0.00
        Open
        0.00
        High
        0.00
        Low
        1,965.40
        Close
        0
        Contracts Traded
        0.00
        Turnover (₹ Lakhs)
        • Expiry Month
        DatePrice

        27-09-2020Current

        5,285.55-280.35 (-5.04%)

        5,457.75
        Open
        5,480.00
        High
        5,245.50
        Low
        5,565.90
        Prev Close
        16,778
        Contracts Traded
        2,24,126.67
        Turnover (₹ Lakhs)

      Corporate Actions

      • Board Meeting

        Quarterly Results

        Dec 18, 2020

        Board Meeting

        Quarterly Results

        Sep 23, 2020

        Board Meeting

        Quarterly Results

        Jun 22, 2020

      • Announced onMeeting on
        Dec 18, 2020Jan 20, 2021
        Quarterly Results
        Sep 23, 2020Oct 21, 2020
        Quarterly Results
        Jun 22, 2020Jul 21, 2020
        Quarterly Results
        May 05, 2020May 19, 2020
        Audited Results
        Feb 13, 2020Feb 21, 2020
        Interim Dividend
      • Announced onEx-DateDividend%
        Feb 24, 2020Mar 03, 2020500%
        May 16, 2019Jul 11, 2019300%
        May 17, 2018Jul 05, 2018200%
        May 17, 2017Jul 06, 2017180%
        May 24, 2016Jul 14, 201670%
      • Announced onEx-Date
        Jul 26, 2016Sep 08, 2016
        Bonus Ratio: 1 share(s) for every 1 shares held
      • Announced onEx-Date
        Jul 26, 2016Sep 08, 2016
        Split: Old FV10.0| New FV:2.0
      • Announced onEx-Date
        Jan 15, 2013Jan 23, 2013
        Rights ratio: 3 share for every 19 held at a price of Rs 1100.0
        Jan 12, 2006Nov 13, 2006
        Rights ratio: 6 share for every 10 held at a price of Rs 325.0
      • Announced onMeeting on
        May 19, 2020Jul 21, 2020
        -
        Feb 17, 2020Mar 17, 2020
        -
        Feb 16, 2019Jul 25, 2019
        Book closure from 13 Jul, 2019 to 25 Jul, 2019
        May 17, 2018Jul 19, 2018
        Book closure from 7 Jul, 2018 to 19 Jul, 2018
        Feb 16, 2019-
        Book closure from 13 Jul, 2019 to 25 Jul, 2019

      About

      Bajaj Finance Ltd., incorporated in the year 1987, is a Large Cap company (having a market cap of Rs 317,256.21 Crore) operating in NBFC sector.

      Bajaj Finance Ltd. key Products/Revenue Segments include Interest, Fees & Commission Income, Income From Sale Of Share & Securities, Income From Financial Services and Service Charges for the year ending 31-Mar-2020.

      For the quarter ended 31-12-2020, the company has reported a Consolidated Total Income of Rs 6,658.47 Crore, up 2.07 % from last quarter Total Income of Rs 6,523.29 Crore and down 5.23 % from last year same quarter Total Income of Rs 7,025.93 Crore. Company has reported net profit after tax of Rs 1,145.98 Crore in latest quarter.

      The company’s top management includes Mr.Rahul Bajaj, Dr.Naushad Forbes, Ms.Gita Piramal, Mr.Ranjan Sanghi, Mr.Dipak Poddar, Dr.Omkar Goswami, Mr.D J Balaji Rao, Mr.Rajiv Bajaj, Mr.Madhur Bajaj, Mr.Rajeev Jain, Mr.Sanjiv Bajaj, Mr.Anami Roy. Company has S R B C & Co. LLP as its auditors. As on 31-12-2020, the company has a total of 60.26 Crore shares outstanding.

      About Bajaj Finance

      Bajaj Finance Ltd., incorporated in the year 1987, is a Large Cap company (having a market cap of Rs 317,256.21 Crore) operating in NBFC sector. Show More

      Key Indices Listed On

      Nifty 50, S&P BSE Sensex, Nifty 100, Nifty 200, Nifty 500

      Address

      Mumbai - Pune Road,Akurdi,Pune, Maharashtra - 411035

      Executive Leadership

      AR

      Anami Roy

      Director
      AS

      Anup Saha

      Deputy Chief Executive Officer
      DJ

      D J Balaji Rao

      Director
      DP

      Dipak Poddar

      Director
      Show More

      Auditors

      S R B C & Co. LLP

      Bajaj Finance Share Price Update

      Bajaj Finance Ltd. share price moved down by -4.79% from its previous close of Rs 5,529.95. Bajaj Finance Ltd. stock last traded price is 5,264.90

      Share PriceValue
      Today/Current/Last5,264.90
      Previous Day5,529.95

      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.