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Hindustan Unilever Ltd.
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  • News
  • Financials
  • Technicals
  • Peers
  • Shareholdings
  • MF
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  • About

Hindustan Unilever Ltd.

  • 2,201.104.20 (0.19%)
  • Closed
  • As On: 05 Mar, 2021, 03:58 PM IST
OPEN TRADING A/C
  • Open2,184.60
  • High2,209.95
  • Low2,175.25
  • Prev Close2,196.90
  • Volume21,29,837
  • VWAP(₹)2,196.79
  • Q3 - Growth in discretionary segment

    The growth in some part of its skincare and cosmetic portfolio, which was hit due to the lockdowns, got resurrected in Q3.
  • Agri inputs matrix

    Palm oil and tea being agro-inputs, they tend to bring volatility in the gross margin of the company. In Q3 palm oil and tea prices inched up leading to cost pressure.
  • Less aggressive price hikes

    Less aggressive price hike as compared to its competitor in tea segment may lead to gain in market share, keep a close watch.
  • Impact of GSKCH merger

    The merger of GSK consumer healthcare business was completed just at the start of FY-21. A part of the impact would be visible later this year with margins increasing at EBIDTA level. While full impact in term of efficiency and productive gains would come over the next few quarters.

Found Insights useful?

Key Metrics

  • PE Ratio(x)70.61
  • EPS - TTM(₹)31.17
  • MCap(₹ Cr.)5,17,278
  • MCap Rank1
  • PB Ratio(x)62.59
  • Div Yield(%)1.57
  • Face Value(₹)1.00
  • 52W High(₹)2,614.30
  • 52W Low(₹)1,757.30
  • MCap/Sales12.48
  • Beta(1 Month)0.37
  • BV/Share(₹)35.10

Returns

  • 1 Day0.19%
  • 1 Month-3.02%
  • 3 Months0.77%
  • 1 Year-0.76%
  • 3 Years69.35%
  • 5 Years159.33%

Hind. Unilever Recommendations

No Recent Recos Available

Financials

    • Operating matrix

      We now have around 21,000 employees working across 31 company-owned factories and 15 offices. More than 1,150 suppliers work with the Company’s supply chain spanning own factories and several others that manufacture on the Company’s behalf. The products are stocked in warehouses dotted across the country and delivered to over 4,500 distributors.

    • New launches and extension

      We continue to focus on key areas – strengthening core brands, accelerating premiumisation of the portfolio and driving market development at scale. We continued to strengthen the core by driving penetration of Fair & Lovely, Pond’s, Sunsilk, Dove and Close Up to name a few. In the Hair Care category, Dove remains India’s No. 1 Hair Care brand. We launched new variants in Dove and Sunsilk in line with our continued focus on naturals trend in this category. In Skin Care, Fair & Lovely continues to deliver healthy growth. In 2019, Fair & Lovely combined the new facial glow trends along with enhanced technology to arrive at a “High Definition (HD) Glow” product line meeting consumer needs

    • Advantage GST

      The introduction of GST has led to flexibility in shaping the Supply Chain network. Your Company is focused on unlocking value in this area by redesigning the supply chain to create a demand focused network.

  • Dec 2020Sep 2020Jun 2020Mar 2020Dec 2019
    Total Income12,235.0011,776.0010,885.009,475.0010,208.00
    Total Income Growth (%)3.908.1914.88-7.18-0.15
    Total Expenses9,555.009,106.008,412.007,441.007,922.00
    Total Expenses Growth (%)4.938.2513.05-6.070.29
    EBIT2,680.002,670.002,473.002,034.002,286.00
    EBIT Growth (%)0.377.9721.58-11.02-1.64
    Profit after Tax (PAT)1,937.001,974.001,898.001,515.001,627.00
    PAT Growth (%)-1.874.0025.28-6.88-10.31
    EBIT Margin (%)21.9022.6722.7221.4722.39
    Net Profit Margin (%)15.8316.7617.4415.9915.94
    Basic EPS (₹)8.248.408.086.987.51
    Dec 2020Sep 2020Jun 2020Mar 2020Dec 2019
    Total Income11,959.0011,593.0010,716.009,277.009,948.00
    Total Income Growth (%)3.168.1815.51-6.75-0.84
    Total Expenses9,322.008,903.008,276.007,259.007,694.00
    Total Expenses Growth (%)4.717.5814.01-5.650.01
    EBIT2,637.002,690.002,440.002,018.002,254.00
    EBIT Growth (%)-1.9710.2520.91-10.47-3.63
    Profit after Tax (PAT)1,921.002,009.001,881.001,519.001,616.00
    PAT Growth (%)-4.386.8023.83-6.00-12.55
    EBIT Margin (%)22.0523.2022.7721.7522.66
    Net Profit Margin (%)16.0617.3317.5516.3716.24
    Basic EPS (₹)8.188.558.017.027.47
    FY 2020FY 2019FY 2018FY 2017FY 2016
    Total Revenue40,415.0039,860.0035,929.0033,531.0032,609.00
    Total Revenue Growth (%)1.3910.947.152.830.22
    Total Expenses31,042.0031,028.0028,592.0027,289.0026,536.00
    Total Expenses Growth (%)0.058.524.772.84-1.35
    Profit after Tax (PAT)6,748.006,054.005,214.004,476.004,139.00
    PAT Growth (%)11.4616.1116.498.14-5.14
    Operating Profit Margin (%)23.8522.5520.7118.9218.92
    Net Profit Margin (%)16.9615.4014.6613.4912.85
    Basic EPS (₹)31.1727.9724.0920.6819.10
    FY 2020FY 2019FY 2018FY 2017FY 2016
    Total Revenue39,518.0038,888.0035,094.0032,416.0031,625.00
    Total Revenue Growth (%)1.6210.818.262.500.64
    Total Expenses30,229.0030,139.0027,747.0026,261.0025,648.00
    Total Expenses Growth (%)0.308.625.662.39-0.98
    Profit after Tax (PAT)6,738.006,036.005,237.004,490.004,137.00
    PAT Growth (%)11.6315.2616.648.53-4.13
    Operating Profit Margin (%)24.2222.9621.3319.3619.29
    Net Profit Margin (%)17.3715.7915.1614.0713.31
    Basic EPS (₹)31.1327.8924.2020.7519.12

    All figures in Rs Cr, unless mentioned otherwise

    Insights
    • Employee & Interest Expense

      Company has spent less than 1% of its operating revenues towards interest expenses and 4.57% towards employee cost in the year ending Mar 31, 2020. (Source: Consolidated Financials)
  • AnnualFY 2020FY 2019FY 2018FY 2017FY 2016
    Total Assets20,153.0018,629.0017,862.0015,706.0014,794.00
    Total Assets Growth (%)8.184.2913.736.162.52
    Total Liabilities11,907.0010,744.0010,561.008,940.008,201.00
    Total Liabilities Growth (%)10.821.7318.139.01-21.03
    Total Equity8,246.007,885.007,301.006,766.006,593.00
    Total Equity Growth (%)4.588.007.912.6262.93
    Current Ratio (x)1.321.371.311.321.46
    Total Debt to Equity (x)0.000.010.000.040.03
    Contingent Liabilities2,923.002,196.001,936.001,323.00161.00
    AnnualFY 2020FY 2019FY 2018FY 2017FY 2016
    Total Assets19,602.0017,865.0017,149.0014,751.0013,920.00
    Total Assets Growth (%)9.724.1816.265.972.10
    Total Liabilities11,571.0010,206.0010,074.008,261.007,641.00
    Total Liabilities Growth (%)13.371.3121.958.11-22.89
    Total Equity8,031.007,659.007,075.006,490.006,279.00
    Total Equity Growth (%)4.868.259.013.3668.57
    Current Ratio (x)1.311.361.291.301.43
    Total Debt to Equity (x)0.000.000.000.000.00
    Contingent Liabilities2,809.002,009.001,699.001,241.001,158.00

    All figures in Rs Cr, unless mentioned otherwise

  • AnnualFY 2020FY 2019FY 2018FY 2017FY 2016
    Net Cash flow from Operating Activities7,623.005,800.006,064.005,185.004,171.00
    Net Cash used in Investing Activities1,791.00-438.00-1,068.00-1,173.00-282.00
    Net Cash flow from Financing Activities-6,819.00-5,390.00-4,975.00-4,214.00-3,864.00
    Net Cash Flow2,595.00-28.0021.00-202.0025.00
    Closing Cash & Cash Equivalent3,216.00621.00649.00628.00830.00
    Closing Cash & Cash Equivalent Growth (%)417.87-4.313.34-24.342.12
    Total Debt/ CFO (x)0.000.020.000.050.04
    AnnualFY 2020FY 2019FY 2018FY 2017FY 2016
    Net Cash flow from Operating Activities7,305.005,728.005,916.004,953.003,974.00
    Net Cash used in Investing Activities1,926.00-264.00-1,264.00-752.00-51.00
    Net Cash flow from Financing Activities-6,676.00-5,462.00-4,651.00-4,264.00-4,008.00
    Net Cash Flow2,555.002.001.00-63.00-85.00
    Closing Cash & Cash Equivalent3,130.00575.00573.00572.00635.00
    Closing Cash & Cash Equivalent Growth (%)444.350.350.17-9.92-12.05
    Total Debt/ CFO (x)0.000.000.000.000.00

    All figures in Rs Cr, unless mentioned otherwise

  • AnnualFY 2020FY 2019FY 2018FY 2017FY 2016
    Return on Equity (%)82.0076.9571.6166.3762.96
    Return on Capital Employed (%)87.5888.9882.0378.5478.81
    Return on Assets (%)33.4832.4929.1928.4927.97
    Interest Coverage Ratio (x)80.43268.64283.19179.34358.24
    Asset Turnover Ratio (x)197.40211.01198.99211.14217.56
    Price to Earnings (x)74.0760.9855.5644.0545.45
    Price to Book (x)60.3246.8939.6329.1428.57
    EV/EBITDA (x)46.8238.7336.1729.0628.71
    EBITDA Margin (%)26.3723.9822.1720.2320.01
    AnnualFY 2020FY 2019FY 2018FY 2017FY 2016
    Return on Equity (%)83.8978.8074.0269.1865.88
    Return on Capital Employed (%)89.4992.2786.5381.8282.44
    Return on Assets (%)34.3733.7830.5330.4329.71
    Interest Coverage Ratio (x)88.63313.46368.35280.77399.47
    Asset Turnover Ratio (x)197.86213.96201.32216.18223.13
    Price to Earnings (x)74.0761.3555.2543.8645.45
    Price to Book (x)61.8148.1640.7930.2829.91
    EV/EBITDA (x)47.5539.2636.3529.6429.31
    EBITDA Margin (%)26.6424.3322.7220.6120.32

Found Financials useful?

Technicals

  • 14 Day EMA Crossover

    Bullish signal on daily chart

    Appeared on: 3 Mar 2021

    14D EMA: 2185.30

    Last Signal 22 Jan 2021 (Gain 0.95%)

    Average price gain of 2.23% within 7 days of Bullish signal in last 5 years

  • 47%
    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

  • R12215.62Pivot

    2195.43

    S12180.92
    R22230.13S22160.73
    R32264.83S32126.03
  • 5 Days14 Days28 Days
    35.4741.0044.50

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)
    Hind. Unilever70.6162.7182.0087.5833.486.3623.8516.9831.171.320.000.00
    Dabur India58.0513.9521.8727.2415.444.3121.6116.678.181.980.070.29
    Godrej Consumer44.608.9518.9419.7610.002.3520.7615.0914.641.060.341.68
    Marico45.2517.0833.7745.1620.417.2619.8614.257.911.780.110.28
    Colgate-Palmo48.05134.59131.45139.5748.024.3324.5121.6231.921.070.010.01
    Add More
    Annual Ratios (%)

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    Insights
    • Stock Returns vs Nifty 100

      Stock gave a 3 year return of 70.21% as compared to Nifty 100 which gave a return of 42.14%. (as of last trading session)
    • Stock Returns vs Nifty FMCG

      Stock generated 70.21% return as compared to Nifty FMCG which gave investors 26.28% return over 3 year time period. (as of last trading session)

    Found Peer Comparison useful?

    Shareholding Patterns

    • CategoryNo. of SharesPercentage% Change QoQ
      Promoters1,45,44,12,85861.90 %0.00
      Pledge00.00 %0.00
      FII42,26,16,07917.99 %0.56
      DII17,97,43,6647.65 %-0.28
      MF8,25,52,8353.51 %-0.44
      Others29,27,83,65412.46 %-0.28
    • Category31 Dec 202030 Sep 202030 Jun 202031 Mar 2020
      Promoters61.9061.9061.9067.18
      Pledge0.000.000.000.00
      FII17.9917.4314.8112.10
      DII7.657.938.356.68
      Mutual Funds3.513.954.372.87
      Others12.4612.7414.9414.04

    Mutual Funds Ownership

    MF Ownership as on 31 January 2021

    • Equity: Large Cap
      • 3,040.21

        Amount Invested (in Cr.)

      • 3.44%

        % of AUM

      • 1.40

        % Change (MoM basis)

    • Equity: Large Cap
      • 1,565.56

        Amount Invested (in Cr.)

      • 3.99%

        % of AUM

      • 3.37

        % Change (MoM basis)

    • Equity: Flexi Cap
      4
      • 1,177.23

        Amount Invested (in Cr.)

      • 3.63%

        % of AUM

      • 0.00

        % Change (MoM basis)

    Futures & Options

      • Type
      • Expiry Month
      • Strike Price
      DatePrice

      27-09-2020Current

      500.000.00 (0.00%)

      0.00
      Open
      0.00
      High
      0.00
      Low
      500.00
      Close
      0
      Contracts Traded
      0.00
      Turnover (₹ Lakhs)
      • Expiry Month
      DatePrice

      27-09-2020Current

      2,202.25-2.80 (-0.13%)

      2,193.95
      Open
      2,209.00
      High
      2,180.05
      Low
      2,205.05
      Prev Close
      7,547
      Contracts Traded
      49,705.18
      Turnover (₹ Lakhs)

    Corporate Actions

    • Board Meeting

      Quarterly Results & Interim Dividend

      Oct 07, 2020

      Interim Dividend

      1400%

      Oct 07, 2020

      Board Meeting

      Quarterly Results & Interim Dividend

      Jul 13, 2020

    • Announced onMeeting on
      Oct 07, 2020Oct 20, 2020
      Quarterly Results & Interim Dividend
      Jul 13, 2020Jul 21, 2020
      Quarterly Results & Interim Dividend
      Apr 22, 2020Apr 30, 2020
      Audited Results & Quarterly Results
      Mar 15, 2020Apr 01, 2020
      Scheme of Arrangement
      Jan 13, 2020Jan 31, 2020
      Quarterly Results
    • Announced onEx-DateDividend%
      Oct 07, 2020Oct 28, 20201400%
      Jul 13, 2020Jul 30, 2020950%
      Apr 30, 2020Jun 19, 20201400%
      Oct 09, 2019Oct 23, 20191100%
      May 03, 2019Jun 20, 20191300%
    • Announced onEx-Date
      Sep 30, 1991Jul 19, 1991
      Bonus Ratio: 1 share(s) for every 2 shares held
      Jun 22, 1987-
      Bonus Ratio: 1 share(s) for every 1 shares held
      Jun 22, 1983-
      Bonus Ratio: 3 share(s) for every 5 shares held
      Jun 22, 1979-
      Bonus Ratio: 1 share(s) for every 3 shares held
    • Announced onEx-Date
      Jul 05, 2000Jul 03, 2000
      Split: Old FV10.0| New FV:1.0
    • No Data Available

    • Announced onMeeting on
      May 27, 2020Jun 30, 2020
      Book closure from Jun 23, 2020 to Jun 30, 2020
      Feb 17, 2020Mar 20, 2020
      -
      May 07, 2019Jun 29, 2019
      Book closure from Jun 22, 2019 to Jun 29, 2019
      May 14, 2018Jun 29, 2018
      Book closure from Jun 23, 2018 to Jun 29, 2018
      Nov 08, 2017Dec 11, 2017
      -

    About

    Hindustan Unilever Ltd., incorporated in the year 1933, is a Large Cap company (having a market cap of Rs 517,160.83 Crore) operating in FMCG sector.

    Hindustan Unilever Ltd. key Products/Revenue Segments include Personal Care and Other Operating Revenue for the year ending 31-Mar-2020.

    For the quarter ended 31-12-2020, the company has reported a Consolidated Total Income of Rs 12,235.00 Crore, up 3.90 % from last quarter Total Income of Rs 11,776.00 Crore and up 19.86 % from last year same quarter Total Income of Rs 10,208.00 Crore. Company has reported net profit after tax of Rs 1,938.00 Crore in latest quarter.

    The company’s top management includes Mr.Sanjiv Mehta, Mr.Srinivas Phatak, Mr.Dev Bajpai, Mr.Wihelmus Uijen, Dr.Ashish Sharad Gupta, Mr.Leo Puri, Mr.O P Bhatt, Dr.Sanjiv Misra, Ms.Kalpana Morparia. Company has BSR & Co. LLP as its auditors. As on 31-12-2020, the company has a total of 234.96 Crore shares outstanding.

    About Hind. Unilever

    Hindustan Unilever Ltd., incorporated in the year 1933, is a Large Cap company (having a market cap of Rs 517,160.83 Crore) operating in FMCG sector. Show More

    Key Indices Listed On

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

    Address

    Unilever House,B D Sawant Marg,Chakala,Mumbai, Maharashtra - 400099

    Executive Leadership

    AR

    Anuradha Razdan

    Executive Director - HR
    AS

    Ashish Sharad Gupta

    Independent Director
    DB

    Dev Bajpai

    Co. Secretary & Compl. Officer
    DB

    Dev Bajpai

    Executive Director
    Show More

    Auditors

    BSR & Co. LLP

    Hind. Unilever Share Price Update

    Hindustan Unilever Ltd. share price moved up by 0.19% from its previous close of Rs 2,196.90. Hindustan Unilever Ltd. stock last traded price is 2,201.10

    Share PriceValue
    Today/Current/Last2,201.10
    Previous Day2,196.90

    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.