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HCL Technologies Ltd.
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HCL Technologies Ltd.

  • 862.2019.05 (2.26%)
  • Closed
  • As On: 03 Dec, 2020, 03:58 PM IST
  • Open848.50
  • High864.00
  • Low843.30
  • Prev Close843.15
  • Volume96,33,229
  • VWAP(₹)857.57
  • US localization - Done and dusted

    With 17,920 employees, the company has achieved 67.1 per cent localisation in the US, so the risk of any regulatory change over the employment policy will not have any major impact on the company
  • Employee cost

    In FY-20, 49.4 percent of the revenue was spent on employee benefits, which was an increase of 90 basis points from the level of 48.5 per cent in FY-19.
  • Currency current

    Ninety seven per cent of its revenues is realised in foreign currencies and 74 per cent of the expenditure is in foreign currency. There is little scope for sudden currency gains after taking into account hedging costs.
  • Regional contribution

    At the end of FY-20 US business contributed 57.8 per cent to revenue (59.6 per cent in FY 2019), while Europe stood at 27.4 per cent (26.7 per cent in FY-19) and the rest of the world was at 11.5 per cent. India’s contribution was 3.3 per cent (3.5 percent in FY-19).

Key Metrics

  • PE Ratio(x)19.19
  • EPS - TTM(₹)44.92
  • MCap(₹ Cr.)2,33,796
  • MCap Rank3
  • PB Ratio(x)4.55
  • Div Yield(%)1.16
  • Face Value(₹)2.00
  • 52W High(₹)910.70
  • 52W Low(₹)375.25
  • MCap/Sales1.68
  • Beta(1 Month)0.86
  • BV/Share(₹)189.49

Returns

  • 1 Day2.26%
  • 1 Month5.91%
  • 3 Months22.0%
  • 1 Year53.34%
  • 3 Years107.76%
  • 5 Years102.6%

Financials

    • Beating 3 Yr Revenue CAGR

      Company's annual revenue growth of 16.12% outperformed its 3 year CAGR of 13.43%. (Source: Consolidated Financials)
    • Employee & Interest Expense

      Company has spent less than 1% of its operating revenues towards interest expenses and 49.42% towards employee cost in the year ending Mar 31, 2020. (Source: Consolidated Financials)
    Sep 2020Jun 2020Mar 2020Dec 2019Sep 2019
    Total Income18,793.0018,137.0018,734.0018,292.0017,629.00
    Total Income Growth (%)3.62-3.192.423.766.13
    Total Expenses14,568.0014,150.0014,725.0014,448.0014,015.00
    Total Expenses Growth (%)2.95-3.901.923.093.11
    EBIT4,225.003,987.004,009.003,844.003,614.00
    EBIT Growth (%)5.97-0.554.296.3619.75
    PAT3,143.002,931.003,172.002,944.002,711.00
    PAT Growth (%)7.23-7.607.748.5921.57
    EBIT Margin (%)22.4821.9821.4021.0120.50
    Net Profit Margin (%)16.7216.1616.9316.0915.38
    Basic EPS (₹)11.5810.8011.6710.8519.99
    Sep 2020Jun 2020Mar 2020Dec 2019Sep 2019
    Total Income8,839.008,678.009,215.008,781.008,223.00
    Total Income Growth (%)1.86-5.834.946.7917.91
    Total Expenses5,578.005,537.006,078.005,718.005,352.00
    Total Expenses Growth (%)0.74-8.906.306.8415.59
    EBIT3,261.003,141.003,137.003,063.002,871.00
    EBIT Growth (%)3.820.132.426.6922.48
    PAT2,530.002,360.002,500.002,444.002,232.00
    PAT Growth (%)7.20-5.602.299.5024.48
    EBIT Margin (%)36.8936.1934.0434.8834.91
    Net Profit Margin (%)28.6227.2027.1327.8327.14
    Basic EPS (₹)9.328.709.209.0116.46
    FY 2020FY 2019FY 2018FY 2017FY 2016
    Total Revenue71,265.0061,370.0051,786.0048,641.0032,002.07
    Total Revenue Growth (%)16.1218.516.4751.99-15.43
    Total Expenses57,285.0048,748.0040,775.0038,101.0024,966.15
    Total Expenses Growth (%)17.5119.557.0252.61-13.08
    Profit after Tax (PAT)11,057.0010,120.008,721.008,606.005,602.43
    PAT Growth (%)9.2616.041.3453.61-23.43
    Operating Profit Margin (%)20.4921.1721.9122.3422.83
    Net Profit Margin (%)15.6416.7417.2418.0917.99
    Basic EPS (₹)40.7573.5862.2360.3339.79
    FY 2020FY 2019FY 2018FY 2017FY 2016
    Total Revenue33,193.0026,817.0022,775.0020,274.0014,403.06
    Total Revenue Growth (%)23.7817.7512.3440.76-21.52
    Total Expenses22,016.0016,886.0013,650.0011,998.008,621.51
    Total Expenses Growth (%)30.3823.7113.7739.16-19.08
    Profit after Tax (PAT)8,969.008,185.007,362.006,873.004,719.08
    PAT Growth (%)9.5811.187.1145.64-25.64
    Operating Profit Margin (%)35.0038.2441.4443.1243.37
    Net Profit Margin (%)27.5031.4633.3535.5735.12
    Basic EPS (₹)33.0659.6952.5448.1833.52

    All figures in Rs Cr, unless mentioned otherwise

  • AnnualFY 2020FY 2019FY 2018FY 2017FY 2016
    Total Assets82,906.0058,575.0048,023.0045,762.0039,340.60
    Total Assets Growth (%)41.5421.974.9416.3211.62
    Total Liabilities31,485.0017,106.0011,637.0012,640.0011,739.17
    Total Liabilities Growth (%)84.0647.00-7.947.677.32
    Total Equity51,421.0041,469.0036,386.0033,122.0027,601.43
    Total Equity Growth (%)24.0013.979.8520.0013.56
    Current Ratio (x)1.622.422.432.332.54
    Total Debt to Equity (x)0.090.090.010.010.03
    Contingent Liabilities702.00476.000.000.00372.07
    AnnualFY 2020FY 2019FY 2018FY 2017FY 2016
    Total Assets53,515.0037,456.0032,818.0032,371.0026,588.04
    Total Assets Growth (%)42.8714.131.3821.756.71
    Total Liabilities16,219.007,017.005,255.006,398.005,091.47
    Total Liabilities Growth (%)131.1433.53-17.8625.66-7.58
    Total Equity37,296.0030,439.0027,563.0025,973.0021,496.57
    Total Equity Growth (%)22.5310.436.1220.8210.77
    Current Ratio (x)1.692.933.293.063.91
    Total Debt to Equity (x)0.000.000.000.000.00
    Contingent Liabilities318.00263.00202.00408.00259.91

    All figures in Rs Cr, unless mentioned otherwise

    • Debt Coverage Capability

      Company is able to pay off its debt obligations within 1 year with latest operating cash flow of Rs 13359.0 Cr. (Source: Consolidated Financials)
    • Increase in Cash from Investing

      Company has used Rs 12374.0 cr for investing activities which is an YoY increase of 302.67%. (Source: Consolidated Financials)
    AnnualFY 2020FY 2019FY 2018FY 2017FY 2016
    Net Cash flow from Operating Activities13,359.008,971.008,328.008,995.003,822.62
    Net Cash used in Investing Activities-12,374.00-3,073.00-2,283.00-3,833.00-2,188.70
    Net Cash flow from Financing Activities-3,168.00-1,462.00-5,714.00-4,517.00-2,237.09
    Net Cash Flow-2,141.004,235.00378.00588.00-622.90
    Closing Cash & Cash Equivalent3,760.005,934.001,699.001,321.00732.91
    Closing Cash & Cash Equivalent Growth (%)-36.64249.2628.6180.24-45.24
    Total Debt/ CFO (x)0.350.410.050.050.25
    AnnualFY 2020FY 2019FY 2018FY 2017FY 2016
    Net Cash flow from Operating Activities9,855.008,676.006,339.006,995.003,154.30
    Net Cash used in Investing Activities-11,091.00995.00-973.00-2,643.00-770.52
    Net Cash flow from Financing Activities-1,988.00-5,335.00-5,547.00-4,112.00-2,698.98
    Net Cash Flow-3,232.004,313.00-142.00227.00-307.56
    Closing Cash & Cash Equivalent1,291.004,523.00210.00352.00125.17
    Closing Cash & Cash Equivalent Growth (%)-71.462,053.81-40.34181.22-71.07
    Total Debt/ CFO (x)0.020.000.010.000.01

    All figures in Rs Cr, unless mentioned otherwise

  • AnnualFY 2020FY 2019FY 2018FY 2017FY 2016
    Return on Equity (%)21.5624.4623.9626.1120.45
    Return on Capital Employed (%)24.4727.6529.2230.8724.09
    Return on Assets (%)13.3317.2718.1618.8014.24
    Interest Coverage Ratio (x)28.6873.54160.58119.4396.21
    Asset Turnover Ratio (x)85.24103.16105.30103.9479.14
    Price to Earnings (x)10.7314.5815.4614.4720.53
    Price to Book (x)2.313.563.703.784.19
    EV/EBITDA (x)6.629.6410.5210.1214.18
    EBITDA Margin (%)25.3324.6024.6424.0824.15
    AnnualFY 2020FY 2019FY 2018FY 2017FY 2016
    Return on Equity (%)24.0426.8826.7026.4621.95
    Return on Capital Employed (%)28.8432.0032.5231.4926.39
    Return on Assets (%)16.7521.8522.4321.2317.74
    Interest Coverage Ratio (x)47.96621.69397.74151.47127.18
    Asset Turnover Ratio (x)60.9269.4467.2559.6750.52
    Price to Earnings (x)13.2318.0218.3218.1224.39
    Price to Book (x)3.184.844.894.795.34
    EV/EBITDA (x)8.7912.5813.1913.2217.40
    EBITDA Margin (%)40.9943.1445.4845.5945.43

Technicals

  • 5 Day EMA Crossover

    Bullish signal on daily chart

    Appeared on: 1 Dec 2020

    5D EMA: 830.80

    Last Signal 26 Nov 2020 (Gain 0.68%)

    Average price gain of 2.44% within 7 days of Bullish signal in last 5 years

    10 Day EMA Crossover

    Bullish signal on daily chart

    Appeared on: 1 Dec 2020

    10D EMA: 829.39

    Last Signal 26 Nov 2020 (Gain 0.68%)

    Average price gain of 2.24% within 7 days of Bullish signal in last 5 years

    14 Day EMA Crossover

    Bullish signal on daily chart

    Appeared on: 1 Dec 2020

    14D EMA: 829.38

    Last Signal 26 Nov 2020 (Gain 0.68%)

    Average price gain of 2.59% within 7 days of Bullish signal in last 5 years

    20 Day EMA Crossover

    Bullish signal on daily chart

    Appeared on: 1 Dec 2020

    20D EMA: 829.77

    Last Signal 26 Nov 2020 (Gain 0.68%)

    Average price gain of 2.42% within 7 days of Bullish signal in last 5 years

    MACD Crossover

    Bearish signal on weekly chart

    Appeared on: 27 Nov 2020

    Region: Positive

    Last Signal 28 Feb 2020 (Loss -29.77%)

    Average price decline of -3.75% within 7 weeks of Bearish signal in last 10 years

  • 48%
    Positive Movement
    since 1st Jan 2005
    on basis
    52%
    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

  • R1869.70Pivot

    856.50

    S1849.00
    R2877.20S2835.80
    R3897.90S3815.10
  • 5 Days14 Days28 Days
    22.0323.7024.90

Peers

    • CHART
    • TABLE
    • 1D
    • 1W
    • 1M
    • 3M
    • 6M
    • 1Y
    • 5Y
  • NAMEP/E (x)P/B (x)ROE %ROCE %ROA %Rev CAGR [3Yr]OPMNPMBasic EPSCurrent RatioTotal Debt/ Equity (x)Total Debt/ CFO (x)
    HCL Tech19.192.3121.5624.4713.3313.4320.4915.6440.751.620.090.35
    TCS33.178.1338.4446.0026.749.6527.5020.6786.193.330.000.00
    Infosys26.874.1525.3530.8317.889.2624.4218.3238.972.620.000.00
    Wipro21.362.0317.5721.7611.963.1921.2315.9716.672.400.110.58
    Tech Mahindra22.192.2618.4819.8810.798.2714.2510.5846.212.120.110.56
    Add More
    Annual Ratios (%)

    Choose from Peers

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      Shareholding Patterns

      • Category30 Sep 202030 Jun 202031 Mar 202031 Dec 2019
        Promoters60.3360.3360.3359.98
        Pledge0.000.000.000.00
        FII24.9225.6226.4227.66
        DII10.6110.009.138.42
        Mutual Funds5.975.865.455.56
        Others4.144.054.123.94
      • CategoryNo. of SharesPercentage% Change QoQ
        Promoters1,63,71,90,27460.33 %0.00
        Pledge00.00 %0.00
        FII67,63,83,90124.92 %-0.70
        DII28,81,18,08510.61 %0.61
        MF16,20,16,3115.97 %0.11
        Others11,19,72,8364.14 %0.09

      Mutual Funds Ownership

      MF Ownership as on 31 October 2020

      • Equity: Large Cap
        • 1,346.92

          Amount Invested (in Cr.)

        • 1.82%

          % of AUM

        • -4.53

          % Change (MoM basis)

      • Equity: Large Cap
        3
        • 1,107.00

          Amount Invested (in Cr.)

        • 4.94%

          % of AUM

        • 0.00

          % Change (MoM basis)

      • Hybrid: Aggressive Hybrid
        4
        • 757.75

          Amount Invested (in Cr.)

        • 2.38%

          % of AUM

        • 0.00

          % Change (MoM basis)

      Futures & Options

        • Expiry Month
        DatePrice

        27-09-2020Current

        864.7516.10 (1.90%)

        854.70
        Open
        866.45
        High
        847.10
        Low
        848.65
        Prev Close
        12,185
        Contracts Traded
        73,308.55
        Turnover (₹ Lakhs)
        • Type
        • Expiry Month
        • Strike Price
        DatePrice

        27-09-2020Current

        0.00-324.00 (-100.00%)

        0.00
        Open
        0.00
        High
        0.00
        Low
        324.00
        Close
        0
        Contracts Traded
        0.00
        Turnover (₹ Lakhs)

      Corporate Actions

      • Board Meeting

        Quarterly Results & 2nd Interim Dividend

        Sep 28, 2020

        Interim

        200%

        Sep 28, 2020

        General Meeting

        -

        Sep 07, 2020

      • Announced onMeeting on
        Sep 28, 2020Oct 16, 2020
        Quarterly Results & 2nd Interim Dividend
        Jul 03, 2020Jul 17, 2020
        Quarterly Results & Interim Dividend
        Apr 23, 2020May 07, 2020
        Audited Results & Final Dividend
        Dec 20, 2019Jan 17, 2020
        Quarterly Results & Interim Dividend
        Sep 30, 2019Oct 23, 2019
        Quarterly Results & Interim Dividend
      • Announced onEx-DateDividend%
        Sep 30, 2019Oct 31, 2019100%
        Dec 20, 2019Jan 24, 2020100%
        Jul 03, 2020Jul 23, 2020100%
        May 07, 2020Sep 14, 2020100%
        Sep 28, 2020Oct 22, 2020200%
      • Announced onEx-Date
        Oct 23, 2019Dec 05, 2019
        Bonus Ratio: 1 share(s) for every 1 shares held
        Jan 30, 2015Mar 19, 2015
        Bonus Ratio: 1 share(s) for every 1 shares held
        Dec 14, 2006Mar 15, 2007
        Bonus Ratio: 1 share(s) for every 1 shares held
      • Announced onEx-Date
        Oct 24, 2000Nov 27, 2000
        Split: Old FV4.0| New FV:2.0
      • No Data Available

      • Announced onMeeting on
        Sep 07, 2020Sep 29, 2020
        -
        Aug 22, 2019Sep 21, 2019
        -
        Jul 12, 2019Aug 06, 2019
        Book closure from Jul 31, 2019 to Aug 2, 2019
        Aug 21, 2018Sep 18, 2018
        Book closure from Sep 12, 2018 to Sep 14, 2018
        Aug 20, 2018-
        Buy Back of Shares

      About

      HCL Technologies Ltd., incorporated in the year 1991, is a Large Cap company (having a market cap of Rs 233972.20 Crore) operating in IT Software sector.

      HCL Technologies Ltd. key Products/Revenue Segments include Software Development Charges which contributed Rs 32384.00 Crore to Sales Value (99.31 % of Total Sales) and Computer Hardware & Software which contributed Rs 222.00 Crore to Sales Value (0.68 % 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 18594.00 Crore, up 4.21 % from last quarter Sales of Rs 17842.00 Crore and up 6.09 % from last year same quarter Sales of Rs 17527.00 Crore Company has reported net profit after tax of Rs 3146.00 Crore in latest quarter.

      The company’s top management includes Dr.Mohan Chellappa, Ms.Robin Abrams, Ms.Nishi Vasudeva, Mr.Thomas Sieber, Mr.Simon John England, Mr.Shiv Nadar, Mr.Shikhar Malhotra, Mr.S Madhavan, Mr.R Srinivasan, Mr.Deepak Kapoor, Dr.Sosale Shankara Sastry, Ms.Roshni Nadar Malhotra. Company has B S R & Co. LLP as its auditors. As on 30-09-2020, the company has a total of 2,713,665,096 shares outstanding.

      About HCL Tech

      HCL Technologies Ltd., incorporated in the year 1991, is a Large Cap company (having a market cap of Rs 233972.20 Crore) operating in IT Software sector. Show More

      Key Indices Listed On

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

      Address

      806, Siddharth,96, Nehru Place,New Delhi, Delhi - 110019

      Executive Leadership

      AR

      Amit Roy

      Executive Vice President
      CV

      C Vijaya Kumar

      President & CEO
      DK

      Deepak Kapoor

      Ind. Non-Executive Director
      GH

      Gade Hanumantha Rao

      President
      Show More

      Auditors

      B S R & Co. LLP
      S R Batliboi & Co. LLP
      B S R & Associates LLP

      HCL Tech Share Price Update

      HCL Technologies Ltd. share price moved up by 2.26% from its previous close of Rs 843.15. HCL Technologies Ltd. stock last traded price is 862.20

      Share PriceValue
      Today/Current/Last862.20
      Previous Day843.15

      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.