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Hero MotoCorp Ltd.
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  • Financials
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Hero MotoCorp Ltd.

  • 3,232.9069.75 (2.21%)
  • Closed
  • As On: 03:56 PM IST
  • Open3,170.50
  • High3,240.75
  • Low3,170.50
  • Prev Close3,163.15
  • Volume7,70,832
  • VWAP(₹)3,213.58
  • Possibility of positive surprise

    If there is any cut in the GST rate on motorcycles, that would be a positive signal for demand in the sector and for bottom-line.
  • Partial entry into premium segment

    The company’s tie-up with Harley-Davidson for distribution of Harley bikes in India is a bet which might take time to deliver any significant result as the price points are too high for Indian consumers.
  • Rural market is the key

    The company has a strong distribution network in the rural and semi-urban areas, which has helped in pushing up the sales after the Covid lockdowns. A part of its fortune is tied-up with the monsoons and the trend in agriculture products.
  • Personal mobility

    Covid fears have pushed up the demand for personal vehicles. What needs to be watched is demand of two wheelers in the post-covid era, which would be an important factor in the growth of bottomline in coming quarters.

Found Insights useful?

Key Metrics

  • PE Ratio(x)25.59
  • EPS - TTM(₹)126.35
  • MCap(₹ Cr.)64,683.75
  • MCap Rank6
  • PB Ratio(x)4.34
  • Div Yield(%)2.78
  • Face Value(₹)2.00
  • 52W High(₹)3,394.90
  • 52W Low(₹)1,475.00
  • MCap/Sales1.09
  • Beta(1 Month)2.08
  • BV/Share(₹)728.19

Returns

  • 1 Day2.21%
  • 1 Month3.11%
  • 3 Months-0.49%
  • 1 Year31.74%
  • 3 Years-9.94%
  • 5 Years30.21%

Financials

    • Quarterly Topline Performance

      Company witnessed QoQ revenue growth of 204.77%, which is highest in the last 3 years. (Source: Standalone Financials)
    • Topline Contraction

      Sales de-grew by 13.48%. Company witnessed revenue contraction for the first time in last 3 years. (Source: Consolidated Financials)
    Sep 2020Jun 2020Mar 2020Dec 2019Sep 2019
    Total Income9,607.253,119.226,490.547,259.067,824.83
    Total Income Growth (%)208.00-51.94-10.59-7.23-6.96
    Total Expenses8,348.523,030.565,830.226,227.886,785.82
    Total Expenses Growth (%)175.48-48.02-6.39-8.224.12
    EBIT1,258.7388.66660.321,031.181,039.01
    EBIT Growth (%)1,319.73-86.57-35.96-0.75-45.10
    PAT958.4959.14604.63901.81879.45
    PAT Growth (%)1,520.71-90.22-32.952.54-29.77
    EBIT Margin (%)13.102.8410.1714.2113.28
    Net Profit Margin (%)9.981.909.3212.4211.24
    Basic EPS (₹)47.992.9630.2745.1544.25
    Sep 2020Jun 2020Mar 2020Dec 2019Sep 2019
    Total Income9,508.673,120.006,407.867,178.947,778.53
    Total Income Growth (%)204.77-51.31-10.74-7.71-5.70
    Total Expenses8,254.083,034.255,753.216,161.496,733.12
    Total Expenses Growth (%)172.03-47.26-6.63-8.495.69
    EBIT1,254.5985.75654.651,017.451,045.41
    EBIT Growth (%)1,363.08-86.90-35.66-2.67-44.34
    PAT953.4561.31620.71880.41874.80
    PAT Growth (%)1,455.13-90.12-29.500.64-30.42
    EBIT Margin (%)13.192.7510.2214.1713.44
    Net Profit Margin (%)10.031.979.6912.2611.25
    Basic EPS (₹)47.733.0731.0844.0843.80
    FY 2020FY 2019FY 2018FY 2017FY 2016
    Total Revenue29,984.5334,657.5532,981.5429,132.3828,869.95
    Total Revenue Growth (%)-13.485.0813.210.913.00
    Total Expenses26,085.4529,614.0127,739.1024,563.9924,517.28
    Total Expenses Growth (%)-11.926.7612.930.19-0.31
    Profit after Tax (PAT)3,638.113,444.093,720.403,584.273,141.98
    PAT Growth (%)5.63-7.433.8014.0832.87
    Operating Profit Margin (%)13.4814.9516.2416.0615.34
    Net Profit Margin (%)12.4310.1311.4612.5211.04
    Basic EPS (₹)182.15172.45186.30179.49157.34
    FY 2020FY 2019FY 2018FY 2017FY 2016
    Total Revenue29,614.4334,341.7932,756.3129,022.8928,990.42
    Total Revenue Growth (%)-13.774.8412.860.113.25
    Total Expenses25,718.1129,331.0627,512.1524,364.4324,595.84
    Total Expenses Growth (%)-12.326.6112.92-0.940.01
    Profit after Tax (PAT)3,633.263,384.873,697.363,377.123,132.37
    PAT Growth (%)7.34-8.459.487.8131.30
    Operating Profit Margin (%)13.5814.9116.2916.3615.37
    Net Profit Margin (%)12.5910.0511.4711.8410.95
    Basic EPS (₹)181.91169.48185.14169.12156.86

    All figures in Rs Cr, unless mentioned otherwise

  • AnnualFY 2020FY 2019FY 2018FY 2017FY 2016
    Total Assets19,674.0718,504.3617,396.7315,312.0012,895.81
    Total Assets Growth (%)6.326.3713.6218.7421.04
    Total Liabilities5,127.185,267.845,332.064,929.114,007.07
    Total Liabilities Growth (%)-2.67-1.208.1723.01-2.17
    Total Equity14,546.8913,236.5212,064.6710,382.898,888.74
    Total Equity Growth (%)9.909.7116.2016.8135.53
    Current Ratio (x)2.021.912.011.811.76
    Total Debt to Equity (x)0.010.020.020.020.03
    Contingent Liabilities510.10875.17444.05514.39694.50
    AnnualFY 2020FY 2019FY 2018FY 2017FY 2016
    Total Assets18,749.3317,641.1916,738.8014,694.2612,340.69
    Total Assets Growth (%)6.285.3913.9119.0717.29
    Total Liabilities4,612.934,784.074,969.924,582.974,395.94
    Total Liabilities Growth (%)-3.58-3.748.444.2510.44
    Total Equity14,136.4012,857.1211,768.8810,111.297,944.75
    Total Equity Growth (%)9.959.2516.3927.2721.45
    Current Ratio (x)2.081.962.041.821.47
    Total Debt to Equity (x)0.000.000.000.000.00
    Contingent Liabilities249.43821.50437.86480.68650.44

    All figures in Rs Cr, unless mentioned otherwise

  • AnnualFY 2020FY 2019FY 2018FY 2017FY 2016
    Net Cash flow from Operating Activities5,518.131,032.274,017.214,007.193,722.37
    Net Cash used in Investing Activities-2,819.141,297.63-1,858.21-1,971.95-2,300.18
    Net Cash flow from Financing Activities-2,601.80-2,252.39-2,102.45-2,035.86-1,474.73
    Net Cash Flow97.1977.5156.55-0.62-52.54
    Closing Cash & Cash Equivalent305.31208.12130.6174.0674.68
    Closing Cash & Cash Equivalent Growth (%)46.7059.3476.36-0.83-51.66
    Total Debt/ CFO (x)0.040.300.060.060.06
    AnnualFY 2020FY 2019FY 2018FY 2017FY 2016
    Net Cash flow from Operating Activities5,410.10979.053,980.864,028.023,913.79
    Net Cash used in Investing Activities-2,883.101,321.23-1,915.22-1,943.94-2,271.34
    Net Cash flow from Financing Activities-2,419.77-2,293.98-2,046.66-2,095.63-1,683.95
    Net Cash Flow107.236.3018.98-11.55-41.50
    Closing Cash & Cash Equivalent147.9140.6834.3815.4056.47
    Closing Cash & Cash Equivalent Growth (%)263.5918.32123.25-72.73-42.36
    Total Debt/ CFO (x)0.000.000.000.000.00

    All figures in Rs Cr, unless mentioned otherwise

    • Passing Profits to Shareholders

      Company has consistently declining ROE in last 5 years. Majority of profits last year were disbursed as dividends to shareholders. (Source: Consolidated Financials)
    AnnualFY 2020FY 2019FY 2018FY 2017FY 2016
    Return on Equity (%)25.2526.2431.0734.7435.56
    Return on Capital Employed (%)25.6236.0440.8241.2746.83
    Return on Assets (%)18.4918.6121.3823.4024.36
    Interest Coverage Ratio (x)84.60136.65171.21168.46298.92
    Asset Turnover Ratio (x)148.69183.58186.57186.84220.66
    Price to Earnings (x)8.7614.8419.0517.9918.73
    Price to Book (x)2.213.895.916.246.65
    EV/EBITDA (x)6.638.9712.1212.6512.24
    EBITDA Margin (%)16.3716.7918.0117.8116.90
    AnnualFY 2020FY 2019FY 2018FY 2017FY 2016
    Return on Equity (%)25.7026.3231.4133.3939.42
    Return on Capital Employed (%)26.5237.1542.3544.0053.02
    Return on Assets (%)19.3719.1822.0822.9825.38
    Interest Coverage Ratio (x)177.94583.64840.07770.992,044.99
    Asset Turnover Ratio (x)153.79190.74192.54193.95231.74
    Price to Earnings (x)8.7715.0819.1619.0818.80
    Price to Book (x)2.253.976.026.377.40
    EV/EBITDA (x)6.679.0612.1712.4612.12
    EBITDA Margin (%)16.4216.7018.0118.0916.91

Found Financials useful?

Technicals

  • 10 Day EMA Crossover

    Bearish signal on daily chart

    Appeared on: 18 Jan 2021

    10D EMA: 3178.82

    Last Signal 7 Jan 2021 (Loss 0.26%)

    Average price decline of -2.20% within 7 days of Bearish signal in last 5 years

    14 Day EMA Crossover

    Bearish signal on daily chart

    Appeared on: 18 Jan 2021

    14D EMA: 3164.34

    Last Signal 4 Jan 2021 (Loss -0.42%)

    Average price decline of -2.06% within 7 days of Bearish signal in last 5 years

    Stochastic Crossover

    Bullish signal on weekly chart

    Appeared on: 15 Jan 2021

    Region: Equlibrium

    Last Signal 20 Nov 2020 (Gain 8.03%)

    Average price gain of 5.79% within 7 weeks of Bullish signal in last 10 years

    5 Day EMA Crossover

    Bearish signal on daily chart

    Appeared on: 15 Jan 2021

    5D EMA: 3215.71

    Last Signal 7 Jan 2021 (Loss 0.26%)

    Average price decline of -2.23% within 7 days of Bearish signal in last 5 years

  • 47%
    Positive Movement
    since 1st Jan 2005
    on basis
    53%
    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

  • R13208.63Pivot

    3189.57

    S13176.13
    R23222.07S23157.07
    R33254.57S33124.57
  • 5 Days14 Days28 Days
    83.3079.0380.12

Found Technicals useful?

Peers

    • Stock Returns vs Nifty 100

      Stock gave a 3 year return of -11.88% as compared to Nifty 100 which gave a return of 29.59%. (as of last trading session)
    • Stock Returns vs Nifty Auto

      Stock generated -11.88% return as compared to Nifty Auto which gave investors -12.72% 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 -11.88% as compared to Nifty 100 which gave a return of 29.59%. (as of last trading session)
    • Stock Returns vs Nifty Auto

      Stock generated -11.88% return as compared to Nifty Auto which gave investors -12.72% 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)
    Hero MotoCorp25.594.4425.2525.6218.490.9613.4812.39182.152.020.010.04
    Bajaj Auto24.704.8624.0628.6319.6610.8921.3016.34180.201.560.000.00
    Eicher Motors72.207.8918.3022.4614.6710.0225.5819.61669.523.150.010.09
    TVS Motor108.176.7619.0319.143.2314.249.383.4713.150.972.7424.11
    Atul Auto20.631.3217.4121.7614.089.4710.858.3524.421.970.000.00
    Add More
    Annual Ratios (%)

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      Shareholding Patterns

      • Category31 Dec 202030 Sep 202030 Jun 202031 Mar 2020
        Promoters34.7634.7634.7734.63
        Pledge0.000.000.000.00
        FII41.1538.6534.6835.63
        DII14.7217.5019.7518.53
        Mutual Funds5.917.478.017.96
        Others9.379.0910.8011.21
      • CategoryNo. of SharesPercentage% Change QoQ
        Promoters6,94,42,08134.76 %0.00
        Pledge00.00 %0.00
        FII8,22,01,94741.15 %2.50
        DII2,94,14,90914.72 %-2.78
        MF1,18,11,6615.91 %-1.56
        Others1,87,08,6739.37 %0.28

      Mutual Funds Ownership

      MF Ownership as on 31 December 2020

      Futures & Options

        • Expiry Month
        DatePrice

        27-09-2020Current

        3,225.1070.75 (2.24%)

        3,173.50
        Open
        3,239.85
        High
        3,165.75
        Low
        3,154.35
        Prev Close
        3,166
        Contracts Traded
        20,308.92
        Turnover (₹ Lakhs)
        • Type
        • Expiry Month
        • Strike Price
        DatePrice

        27-09-2020Current

        0.00-796.20 (-100.00%)

        0.00
        Open
        0.00
        High
        0.00
        Low
        796.20
        Close
        0
        Contracts Traded
        0.00
        Turnover (₹ Lakhs)

      Corporate Actions

      • Board Meeting

        Quarterly Results

        Oct 05, 2020

        Board Meeting

        Quarterly Results

        Jul 23, 2020

        General Meeting

        Book closure from Aug 3, 2020 to Aug 12, 2020

        Jun 09, 2020

      • Announced onMeeting on
        Oct 05, 2020Oct 28, 2020
        Quarterly Results
        Jul 23, 2020Aug 13, 2020
        Quarterly Results
        May 20, 2020Jun 09, 2020
        Audited Results & Final Dividend
        Feb 03, 2020Feb 06, 2020
        Quarterly Results & Interim Dividend
        Sep 27, 2019Oct 23, 2019
        Quarterly Results
      • Announced onEx-DateDividend%
        Jun 09, 2020Jul 30, 20201250%
        Feb 06, 2020Feb 17, 20203250%
        Apr 26, 2019Jul 16, 20191600%
        Jan 31, 2019Feb 11, 20192750%
        May 02, 2018Jul 11, 20182000%
      • Announced onEx-Date
        Aug 04, 1998Aug 10, 1998
        Bonus Ratio: 1 share(s) for every 1 shares held
        Oct 27, 1994Nov 21, 1994
        Bonus Ratio: 1 share(s) for every 4 shares held
      • Announced onEx-Date
        Jan 30, 2001Mar 12, 2001
        Split: Old FV10.0| New FV:2.0
      • No Data Available

      • Announced onMeeting on
        Jun 09, 2020Aug 12, 2020
        Book closure from Aug 3, 2020 to Aug 12, 2020
        Apr 26, 2019Jul 29, 2019
        Book closure from Jul 18, 2019 to Jul 29, 2019
        May 02, 2018Jul 24, 2018
        Book closure from Jul 13, 2018 to Jul 24, 2018
        May 11, 2017Jul 14, 2017
        Book closure from Jul 4, 2017 to Jul 14, 2017
        Aug 26, 2016Sep 23, 2016
        Rs.32.0000 per share(1600%)Final Dividend

      About

      Hero MotoCorp Ltd., incorporated in the year 1984, is a Large Cap company (having a market cap of Rs 64582.87 Crore) operating in Auto sector.

      Hero MotoCorp Ltd. key Products/Revenue Segments include Motorised Two Wheelers Upto 350cc Engine Capacity which contributed Rs 24917.15 Crore to Sales Value (86.40 % of Total Sales), Spares (Two Wheelers) which contributed Rs 2895.89 Crore to Sales Value (10.04 % of Total Sales), Sale of services which contributed Rs 595.39 Crore to Sales Value (2.06 % of Total Sales) and Other Operating Revenue which contributed Rs 427.66 Crore to Sales Value (1.48 % 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 9473.32 Crore, up 219.07 % from last quarter Sales of Rs 2969.08 Crore and up 23.67 % from last year same quarter Sales of Rs 7660.27 Crore Company has reported net profit after tax of Rs 950.85 Crore in latest quarter.

      The company’s top management includes Mr.M Damodaran, Mr.Paul Edgerley, Mr.Pawan Munjal, Mr.Pradeep Dinodia, Mr.Suman Kant Munjal, Mr.Vikram S Kasbekar, Ms.Shobana Kamineni, Ms.Tina Trikha, Prof.Jagmohan Singh Raju. Company has BSR & Co. LLP as its auditors. As on 31-12-2020, the company has a total of 199,767,610 shares outstanding.

      About Hero MotoCorp

      Hero MotoCorp Ltd., incorporated in the year 1984, is a Large Cap company (having a market cap of Rs 64582.87 Crore) operating in Auto sector. Show More

      Key Indices Listed On

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

      Address

      The Grand Plaza,Plot No. 2, Nelson Mandela Road,Vasant Kunj - Phase-II,New Delhi, Delhi - 110070

      Executive Leadership

      JS

      Jagmohan Singh Raju

      Independent Director
      MD

      M Damodaran

      Ind. Non-Executive Director
      ML

      Malo Le Masson

      Head
      MB

      Markus Braunsperger

      Chief Technology Officer
      Show More

      Auditors

      BSR & Co. LLP

      Hero MotoCorp Share Price Update

      Hero MotoCorp Ltd. share price moved up by 2.21% from its previous close of Rs 3,163.15. Hero MotoCorp Ltd. stock last traded price is 3,232.90

      Share PriceValue
      Today/Current/Last3,232.90
      Previous Day3,163.15

      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

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      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.