SubscribeGet APP
State Bank of India
  • Overview
  • News
  • Financials
  • Technicals
  • Peers
  • Shareholdings
  • MF
  • F&O
  • Corporate Actions
  • About

State Bank of India

  • 389.605.95 (1.55%)
  • Closed
  • As On: 08 Mar, 2021, 03:59 PM IST
OPEN TRADING A/C
  • Open388.45
  • High393.40
  • Low386.05
  • Prev Close383.65
  • Volume3,91,47,858
  • VWAP(₹)389.52
  • Big chunk of business

    Home loan, constitutes 23% of Bank’s domestic advances. The total housing advances at the end of Q3 stood at Rs 4,84,453 crore, making SBI one of the largest housing financers in India.
  • Operationally better

    The high collection efficiency ratio of the bank indicates that operational reforms on the recovery side have started to show an impact. High provision coverage ratio, focusing more on retail in Q3
  • Q3- Better than expected asset quality

    The divergence in reported gross NPA for Q3 ofFY-21 (4.77 %) due to SC ruling and possible gross NPA (5.44%), indicates towards lower probability of any major negative surprise on asset quality in near term.
  • Cushion in subsidiaries

    In the last couple of year, the bank has been getting a few of its subsidiaries listed. Now, their shares are being traded on the stock exchange. The first round of unlocking value has taken place. The requirement of additional funds, if any, could be through selling stake in some of these subsidiaries.

Found Insights useful?

Key Metrics

  • PE Ratio(x)14.99
  • EPS - TTM(₹)25.98
  • MCap(₹ Cr.)3,47,703
  • MCap Rank4
  • PB Ratio(x)1.32
  • Div Yield(%)0.00
  • Face Value(₹)1.00
  • 52W High(₹)427.70
  • 52W Low(₹)149.45
  • MCap/Sales0.65
  • Beta(1 Month)1.73
  • BV/Share(₹)290.21

Returns

  • 1 Day1.55%
  • 1 Month-1.88%
  • 3 Months43.29%
  • 1 Year44.03%
  • 3 Years51.71%
  • 5 Years112.49%

SBI Recommendations

  • Target₹1200
  • OrganizationMotilal Oswal Financial Services
  • NEUTRAL
  • Target₹550
  • OrganizationNomura, India
  • BUY
  • Target₹475
  • OrganizationMotilal Oswal Financial Services
  • BUY

Financials

    • Credit growth acceleration and deceleration

      While the sector-wise credit data for March 2020, indicates that the incremental credit has increased only in Agri. & Allied sectors and all other sectors have shown a deceleration. Credit to Industry declined to 1.4%in FY2020 (6.9% in FY2019), services by 8.5% (17.8% in FY2019). While, personal loans declined marginally to 15.7% in FY2020 from 16.4% in FY2019, credit to MSE and NBFC has increased substantially, due to the enhanced support by Banks in the form of increase in working capital limits.

    • Digital banking - First few steps

      During FY2020, YONO has achieved an overall growth of 2.6 times on the liabilities side (Digital accounts increased from 27 lakh to 70 lakh), 2.8 times growth on the assets side (Digital lending book size increased from 3,400 crore to 9,600 crore ) .Your Bank continued to expand its digital footprint across the country and deployed 6.73 lakh PoS terminals, 3.33 lakh Bharat QR code and on boarded 9.53 lakh merchants on BHIM-Aadhaar-SBI. In total, the number of merchant payment acceptance touchpoints crossed 19.59 lakh as on 31st March, 2020. Your Bank has acquired nearly 60 crore transactions as on 31st March, 2020 with 10% increase on YoY basis.

    • Wealth management - making bank wealthier

      In FY2020, SBI Wealth made deep inroads into the premium market segment. Your Bank’s Wealth Management Business has shown exponential growth in terms of Client Acquisition and Assets Under Management during the financial year. The number of clients increased by 2.4 times, from 55,502 in March, 2019 to 132,354 in March, 2020 while the AUM grew by 3.6 times, reaching rupees 109,061 crore against rupees 30,270 crore during the period.

  • Dec 2020Sep 2020Jun 2020Mar 2020Dec 2019
    Total Income97,182.1595,373.5087,984.3394,218.8295,384.28
    Total Income Growth (%)1.908.40-6.62-1.226.76
    Provisions & Contingencies10,801.6711,221.0212,562.7614,021.617,677.85
    Provisions & Contingencies Growth (%)-3.74-10.68-10.4082.62-43.71
    Profit after Tax (PAT)6,257.555,245.884,776.506,909.956,531.95
    PAT Growth (%)19.299.83-30.885.7993.52
    Gross NPA (%)-----
    Net NPA (%)-----
    Net Profit Margin (%)6.445.505.437.336.85
    Basic EPS (₹)7.015.885.357.747.32
    Dec 2020Sep 2020Jun 2020Mar 2020Dec 2019
    Total Income75,980.6575,341.8074,457.8676,027.5176,797.91
    Total Income Growth (%)0.851.19-2.06-1.005.42
    Provisions & Contingencies10,342.3910,118.3112,501.3013,495.087,252.90
    Provisions & Contingencies Growth (%)2.21-19.06-7.3686.06-44.80
    Profit after Tax (PAT)5,196.224,574.164,189.343,580.815,583.36
    PAT Growth (%)13.609.1916.99-35.8785.39
    Gross NPA (%)4.775.285.446.156.94
    Net NPA (%)1.231.591.862.232.65
    Net Profit Margin (%)6.846.075.634.717.27
    Basic EPS (₹)5.825.134.694.016.26
    FY 2020FY 2019FY 2018FY 2017FY 2016
    Total Income3,68,010.653,30,687.363,06,527.522,98,640.272,73,461.13
    Total Income Growth (%)11.297.882.649.216.29
    Provisions & Contingencies56,928.4656,950.5267,957.5862,626.3843,363.31
    Provisions & Contingencies Growth (%)-0.04-16.208.5144.4229.95
    Profit after Tax (PAT)19,767.802,299.64-4,556.29241.2312,224.60
    PAT Growth (%)492.26---103.07-27.25
    Net Interest Margin (%)2.592.502.272.362.52
    Net Profit Margin (%)7.320.90-1.980.105.54
    Basic EPS (₹)22.152.58-5.340.3115.95
    FY 2020FY 2019FY 2018FY 2017FY 2016
    Total Income3,02,545.072,79,643.542,65,100.002,10,979.171,91,843.67
    Total Income Growth (%)8.195.4925.659.979.64
    Provisions & Contingencies53,644.5054,573.8066,058.4140,363.7933,307.15
    Provisions & Contingencies Growth (%)-1.70-17.3963.6621.1925.99
    Profit after Tax (PAT)14,488.11862.23-6,547.4510,484.109,950.65
    PAT Growth (%)1,580.31--162.455.36-24.05
    Net Interest Margin (%)2.482.402.162.282.42
    Net Profit Margin (%)5.630.35-2.965.976.06
    Basic EPS (₹)16.230.97-7.6713.4312.98

    All figures in Rs Cr, unless mentioned otherwise

    Insights
    • Beating 3 Yr Revenue CAGR

      Company's annual revenue growth of 11.29% outperformed its 3 year CAGR of 7.14%. (Source: Consolidated Financials)
    • Quarterly Revenue Growth Comparison

      Company reported total income growth on both quarterly & yearly basis. Total income for Dec 31, 2020 quarter was Rs 97182.15 cr which is an increase of 1.9% QoQ and 1.88% YoY. (Source: Consolidated Financials)
  • AnnualFY 2020FY 2019FY 2018FY 2017FY 2016
    Advances23,74,311.1822,26,853.6719,60,118.5418,96,886.8218,70,260.89
    Advances Growth (%)6.6213.613.331.4210.52
    Deposits32,74,160.6329,40,541.0627,22,178.2825,99,810.6622,53,857.56
    Deposits Growth (%)11.358.024.7115.359.79
    Total Equity2,59,003.952,40,532.652,34,937.192,23,672.791,86,859.77
    Total Equity Growth (%)7.682.385.0419.7011.97
    Gross NPA (%)-----
    Net NPA (%)-----
    Capital Adequacy Ratios (%)-----
    Contingent Liabilities12,21,083.1111,21,246.2811,66,334.8011,84,907.8211,84,201.34
    AnnualFY 2020FY 2019FY 2018FY 2017FY 2016
    Advances23,25,289.5621,85,876.9219,34,880.1915,71,078.3814,63,700.42
    Advances Growth (%)6.3812.9723.167.3412.59
    Deposits32,41,620.7329,11,386.0127,06,343.2920,44,751.3917,30,722.44
    Deposits Growth (%)11.347.5832.3618.149.76
    Total Equity2,32,007.432,20,913.822,19,128.561,88,286.061,44,274.44
    Total Equity Growth (%)5.020.8116.3830.5112.33
    Gross NPA (%)6.157.5310.916.906.50
    Net NPA (%)2.233.015.733.713.81
    Capital Adequacy Ratios (%)13.1312.7212.6013.1113.12
    Contingent Liabilities12,14,994.6111,16,081.4611,62,020.6910,46,440.939,71,956.01

    All figures in Rs Cr, unless mentioned otherwise

  • AnnualFY 2020FY 2019FY 2018FY 2017FY 2016
    Net Cash flow from Operating Activities23,928.5329,556.01-96,507.9177,406.0014,476.68
    Net Cash used in Investing Activities-3,323.69-856.7711,065.77-2,832.12-3,668.56
    Net Cash flow from Financing Activities5,429.52447.645,547.16-4,196.484,348.45
    Net Cash Flow28,803.0030,223.16-77,908.0568,637.6916,078.42
    Closing Cash & Cash Equivalent2,54,315.262,25,512.261,95,289.112,73,197.162,04,559.47
    Closing Cash & Cash Equivalent Growth (%)12.7715.48-28.5233.558.53
    AnnualFY 2020FY 2019FY 2018FY 2017FY 2016
    Net Cash flow from Operating Activities25,687.8634,627.51-85,425.2511,060.3211,196.55
    Net Cash used in Investing Activities-2,976.77-3,958.60879.08-3,148.45-3,748.37
    Net Cash flow from Financing Activities3,352.17-1,087.834,290.92-1,780.274,505.88
    Net Cash Flow28,606.8930,591.4719,926.994,503.9912,711.87
    Closing Cash & Cash Equivalent2,51,097.012,22,490.111,91,898.641,71,971.651,67,467.66
    Closing Cash & Cash Equivalent Growth (%)12.8615.9411.592.698.21

    All figures in Rs Cr, unless mentioned otherwise

    Insights
    • Increase in Cash from Investing

      Company has used Rs 3323.69 cr for investing activities which is an YoY increase of 287.93%. (Source: Consolidated Financials)
  • AnnualFY 2020FY 2019FY 2018FY 2017FY 2016
    Return on Equity (%)8.691.09-2.210.136.82
    Return on Assets (%)0.470.05-0.120.000.39
    Cost to Income (%)51.2751.9353.5350.1943.03
    Interest income to Earning assets (%)6.426.516.336.687.17
    Interest Expense to Earning assets (%)3.834.004.054.324.65
    Price to Earnings (x)8.90125.00-49.021,000.0012.35
    Price to Book (x)0.771.361.091.280.84
    Price to Sales (x)0.651.130.971.010.68
    Operating Profit Margin (%)-29.63-29.32-35.70-29.76-18.16
    AnnualFY 2020FY 2019FY 2018FY 2017FY 2016
    Return on Equity (%)6.950.43-3.376.696.89
    Return on Assets (%)0.360.02-0.180.380.42
    Cost to Income (%)42.5744.4347.5241.1539.14
    Interest income to Earning assets (%)6.516.596.386.486.95
    Interest Expense to Earning assets (%)4.024.194.214.204.53
    Price to Earnings (x)12.14333.33-34.1322.2715.17
    Price to Book (x)0.841.461.151.491.05
    Price to Sales (x)0.681.181.011.330.92
    Operating Profit Margin (%)-11.94-14.78-23.19-14.23-10.91

Found Financials useful?

Technicals

  • 20 Day EMA Crossover

    Bullish signal on daily chart

    Appeared on: 8 Mar 2021

    20D EMA: 385.98

    Last Signal 1 Feb 2021 (Gain 31.43%)

    Average price gain of 4.89% within 7 days of Bullish signal in last 5 years

    14 Day EMA Crossover

    Bearish signal on daily chart

    Appeared on: 5 Mar 2021

    14D EMA: 392.30

    Last Signal 26 Feb 2021 (Loss 0.22%)

    Average price decline of -2.69% within 7 days of Bearish signal in last 5 years

    5 Day EMA Crossover

    Bearish signal on daily chart

    Appeared on: 4 Mar 2021

    5D EMA: 398.05

    Last Signal 26 Feb 2021 (Loss 0.10%)

    Average price decline of -2.70% within 7 days of Bearish signal in last 5 years

    10 Day EMA Crossover

    Bearish signal on daily chart

    Appeared on: 4 Mar 2021

    10D EMA: 397.08

    Last Signal 26 Feb 2021 (Loss 0.10%)

    Average price decline of -2.57% within 7 days of Bearish signal in last 5 years

  • 46%
    Positive Movement
    since 1st Jan 2005
    on basis
    54%
    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

  • R1393.32Pivot

    389.68

    S1385.97
    R2397.03S2382.33
    R3404.38S3374.98
  • 5 Days14 Days28 Days
    12.8513.9913.12

Found Technicals useful?

Peers

  • NAMEP/E (x)P/B (x)ROE %ROA %Rev CAGR [3Yr]OPMNPMNIM %Cost to Income %Interest income to Earning assets %Net NPA %Capital Adequacy Ratio %
    SBI14.991.348.690.477.14-29.637.322.5951.276.422.2313.13
    PNB42.030.680.740.053.92-16.430.792.1041.906.445.7814.14
    Bank of Baroda15.280.551.210.0720.01-14.251.172.4044.026.573.1313.30
    IDBI Bank36.921.11-45.30-4.26-7.21-83.81-61.542.3396.106.934.1913.31
    IOB46.251.79-52.78-3.27-3.44-68.29-48.992.0382.776.675.4410.72
    Add More
    Annual Ratios (%)

    Choose from Peers

    • Bank of India
    • Canara Bank
    • Union Bank India
    • Bank of Maha
    • Indian Bank

    Choose from Stocks

      • CHART
      • TABLE
      • 1D
      • 1W
      • 1M
      • 3M
      • 6M
      • 1Y
      • 5Y
    Insights
    • Stock Returns vs Nifty 100

      Stock gave a 3 year return of 53.84% as compared to Nifty 100 which gave a return of 42.6%. (as of last trading session)
    • Stock Returns vs Nifty Bank

      Stock generated 53.84% return as compared to Nifty Bank which gave investors 43.92% return over 3 year time period. (as of last trading session)

    Found Peer Comparison useful?

    Shareholding Patterns

    • CategoryNo. of SharesPercentage% Change QoQ
      Promoters5,07,97,75,28857.64 %0.01
      Pledge00.00 %0.00
      FII86,50,12,2589.82 %2.07
      DII2,19,28,78,32124.88 %-0.41
      MF1,12,10,72,10312.72 %-0.23
      Others78,69,45,6677.66 %-1.67
    • Category31 Dec 202030 Sep 202030 Jun 202031 Mar 2020
      Promoters57.6457.6357.6457.63
      Pledge0.000.000.000.00
      FII9.827.757.919.59
      DII24.8825.2924.7024.56
      Mutual Funds12.7212.9513.1813.62
      Others7.669.339.758.22

    Mutual Funds Ownership

    MF Ownership as on 31 January 2021

    Futures & Options

      • Type
      • Expiry Month
      • Strike Price
      DatePrice

      27-09-2020Current

      0.00-111.70 (-100.00%)

      0.00
      Open
      0.00
      High
      0.00
      Low
      111.70
      Close
      0
      Contracts Traded
      0.00
      Turnover (₹ Lakhs)
      • Expiry Month
      DatePrice

      27-09-2020Current

      390.605.30 (1.38%)

      390.80
      Open
      394.70
      High
      388.00
      Low
      385.30
      Prev Close
      19,696
      Contracts Traded
      2,30,964.47
      Turnover (₹ Lakhs)

    Corporate Actions

    • Board Meeting

      Quarterly Results

      Oct 16, 2020

      Board Meeting

      Others

      Sep 28, 2020

      Board Meeting

      Quarterly Results

      Jul 27, 2020

    • Announced onMeeting on
      Oct 16, 2020Nov 04, 2020
      Quarterly Results
      Sep 28, 2020Sep 30, 2020
      Others
      Jul 27, 2020Jul 31, 2020
      Quarterly Results
      Jul 10, 2020Jul 15, 2020
      Others
      Jun 04, 2020Jun 11, 2020
      Others
    • Announced onEx-DateDividend%
      May 19, 2017May 26, 2017260%
      May 16, 2016Jun 03, 2016260%
      May 22, 2015May 28, 2015350%
      May 14, 2014May 29, 2014150%
      Mar 04, 2014Mar 11, 2014150%
    • No Data Available

    • Announced onEx-Date
      Sep 24, 2014Nov 20, 2014
      Split: Old FV10.0| New FV:1.0
    • Announced onEx-Date
      Jan 14, 2008Jan 28, 2008
      Rights ratio: 1 share for every 5 held at a price of Rs 1590.0
      Nov 26, 1993Nov 26, 1993
      Rights ratio: 3 share for every 5 held at a price of Rs 60.0
    • Announced onMeeting on
      Jun 16, 2020Jul 14, 2020
      -
      May 05, 2020Jun 17, 2020
      -
      May 20, 2019Jun 20, 2019
      -
      Nov 06, 2018Dec 07, 2018
      -
      May 28, 2018Jun 28, 2018
      Book closure from Jun 19, 2018 to Jun 28, 2018

    About

    State Bank of India, incorporated in the year 1955, is a banking company (having a market cap of Rs 347,702.87 Crore).

    State Bank of India key Products/Revenue Segments include Interest & Discount on Advances & Bills, Income From Investment, Interest and Interest On Balances with RBI and Other Inter-Bank Funds for the year ending 31-Mar-2020.

    The Bank has reported Standalone Non Performing Assets (Gross NPAs) at .00 % of total assets and Standalone Net Non Performing Assets (Net NPAs) at .00% of total assets for the quarter ending 31-12-2020.

    For the quarter ended 31-12-2020, the company has reported a Consolidated Total Income of Rs 97,182.15 Crore, up 1.90 % from last quarter Total Income of Rs 95,373.50 Crore and up 1.88 % from last year same quarter Total Income of Rs 95,384.28 Crore. The bank has reported net profit after tax of Rs 6,257.55 Crore in latest quarter.

    The bank’s top management includes Mr.Dinesh Kumar Khara, Mr.Debasish Panda, Mr.Sanjeev Maheshwari, Dr.Purnima Gupta, Dr.Pushpendra Rai, Mr.Mrugank M Paranjape, Mr.Ketan S Vikamsey, Dr.Ganesh Natarajan, Mr.B Venugopal, Mr.Ashwani Bhatia, Mr.C S Setty, Mr.Chandan Sinha. It has Shah Gupta & Co. as its auditoRs As on 31-12-2020, the company has a total of 892.46 Crore shares outstanding.

    About SBI

    State Bank of India, incorporated in the year 1955, is a banking company (having a market cap of Rs 347,702.87 Crore). Show More

    Key Indices Listed On

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

    Address

    State Bank Bhavan,Corporate Centre,Mumbai, Maharashtra - 400021

    Executive Leadership

    AM

    Abhijit Majumdar

    Chief General Manager
    AB

    Ashwani Bhatia

    Managing Director
    BV

    B Venugopal

    Director
    CS

    C S Setty

    Managing Director
    Show More

    Auditors

    Chaturvedi & Shah LLP
    Ray & Ray
    Khandelwal Jain & Co.
    Umamaheswara Rao & Co.

    SBI Share Price Update

    State Bank of India share price moved up by 1.55% from its previous close of Rs 383.65. State Bank of India stock last traded price is 389.60

    Share PriceValue
    Today/Current/Last389.60
    Previous Day383.65

    DATA SOURCES: TickerPlant (for live BSE/NSE quotes service) and Dion Global Solutions Ltd. (for corporate data, historical price & volume, F&O data). Sensex & BSE Quotes and Nifty & NSE Quotes are real-time and licensed from BSE and NSE respectively. All timestamps are reflected in IST (Indian Standard Time).

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

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

    Markets Data

    *

    Key Metrics

    • This is a ratio arrived at by dividing the current market price of a stock by its latest (annual or annualized) earnings per share. Here we have taken the TTM (trailing twelve months) adjusted earnings per share.

    • Earnings per share (TTM) tells the profit after tax earned on a per share basis by a stock over the last twelve months or four quarters.

    • MCap or Market capitalization of a stock is calculated by multiplying the total number of shares outstanding of that particular stock with its current market price.

    • This is the ranking of a company within its sector based on MCap or Market capitalization. Higher the market capitalization of a company, higher the rank it is assigned.

    • Price to Book represents the ratio of current market price of a stock to its book value per share. The book value itself is arrived at by dividing the net worth of a company by the total number of shares outstanding of the company at that time.

    • Dividend Yield calculates the amount of full year dividend declared by a company as a percentage of the current market price of a stock. All other things being equal, higher the dividend yield of the stock, the better it is for investors.

    • Face value of a stock is the value ascribed to the stock as per the balance sheet of the company. The dividend declared by a company is usually declared as a percentage of face value.

    • Beta (β) is a measure of systematic risk. It describes the responsiveness of a stock to fluctuations in the market. Beta coefficient of more than 1 denotes that a security is more volatile than its benchmark and less than 0 signifies that security return is not correlated to market movement.

    • Volume Weighted Average Price represents the average price of a security over a particular time period (example one trading day) weighted by the volume traded at each price point.

    • This represents the 52 week high and low price of the security. It is also the 1 year high and low of the security. This represents the highest and lowest price touched by the security during the past 52 weeks or 1 year including today.

    • Book value represents the value arrived at by subtracting the total liabilities from the total assets of the company. On dividing this value with the total number of shares outstanding for the company, we can arrive at book value per share. Book value is also known as Net Asset Value of a company.

    • This is a ratio of market capitalisation of a company’s stock to its annual sales. The market capitalization here is taken for the fully paid-up equity share of the company.

    Technicals

    • Lorem Ipsum is simply dummy text of the printing and typesetting industry. Lorem Ipsum has been the industry's standard dummy text ever since the 1500s, when an unknown printer took a galley of type and scrambled it to make a type specimen book. It has survived not only five centuries, but also the leap into electronic typesetting, remaining essentially unchanged. It was popularised in the 1960s with the release of Letraset sheets containing Lorem Ipsum passages, and more recently with desktop publishing software like Aldus PageMaker including versions of Lorem Ipsum.

      Lorem Ipsum is simply dummy text of the printing and typesetting industry. Lorem Ipsum has been the industry's standard dummy text ever since the 1500s, when an unknown printer took a galley of type and scrambled it to make a type specimen book. It has survived not only five centuries, but also the leap into electronic typesetting, remaining essentially unchanged. It was popularised in the 1960s with the release of Letraset sheets containing Lorem Ipsum passages, and more recently with desktop publishing software like Aldus PageMaker including versions of Lorem Ipsum.

    • Lorem Ipsum is simply dummy text of the printing and typesetting industry. Lorem Ipsum has been the industry's standard dummy text ever since the 1500s, when an unknown printer took a galley of type and scrambled it to make a type specimen book. It has survived not only five centuries, but also the leap into electronic typesetting, remaining essentially unchanged. It was popularised in the 1960s with the release of Letraset sheets containing Lorem Ipsum passages, and more recently with desktop publishing software like Aldus PageMaker including versions of Lorem Ipsum.

      Lorem Ipsum is simply dummy text of the printing and typesetting industry. Lorem Ipsum has been the industry's standard dummy text ever since the 1500s, when an unknown printer took a galley of type and scrambled it to make a type specimen book. It has survived not only five centuries, but also the leap into electronic typesetting, remaining essentially unchanged. It was popularised in the 1960s with the release of Letraset sheets containing Lorem Ipsum passages, and more recently with desktop publishing software like Aldus PageMaker including versions of Lorem Ipsum.

    • Lorem Ipsum is simply dummy text of the printing and typesetting industry. Lorem Ipsum has been the industry's standard dummy text ever since the 1500s, when an unknown printer took a galley of type and scrambled it to make a type specimen book. It has survived not only five centuries, but also the leap into electronic typesetting, remaining essentially unchanged. It was popularised in the 1960s with the release of Letraset sheets containing Lorem Ipsum passages, and more recently with desktop publishing software like Aldus PageMaker including versions of Lorem Ipsum.

      Lorem Ipsum is simply dummy text of the printing and typesetting industry. Lorem Ipsum has been the industry's standard dummy text ever since the 1500s, when an unknown printer took a galley of type and scrambled it to make a type specimen book. It has survived not only five centuries, but also the leap into electronic typesetting, remaining essentially unchanged. It was popularised in the 1960s with the release of Letraset sheets containing Lorem Ipsum passages, and more recently with desktop publishing software like Aldus PageMaker including versions of Lorem Ipsum.

    • Pivot points are indicative support and resistance levels which are calculated on basis of previous day’s high, low and closing prices. Pivot level for Monday’s trade would be based on Friday’s prices and Monday’s, high, low and close price would go into calculation of pivot levels for Tuesday’s trading session.

      There are two underlying assumptions in pivot points. First, the specific price level indicated by R1, R2 and R3 may act as a barrier or resistance in an uptrend. So, if a stock moves up above these pivots levels, the uptrend gets confirmed. Second these specific price levels may see an increased activity, hence may be used as levels to book profit by traders with a long positions. For traders with short position, these points are often helpful in determining what should be the stop loss for a trade.

      Similarly, in case of support levels as indicated by S1, S2 and S3, they may act as price level where a stock might get a breather when it is slipping southward. In case these supports levels are broken it is a confirmation of a down trend. The stock may also see increased activity close to pivot levels. They may be used by trader may use them to put stop loss for a long trade. If a trader has short position, the pivot level may help in determine a level, where profit may be booked.

      Like any other technical indicator, pivots levels cannot and should not be used as single factor while taking a trading decision. They should be combined with other technical indicators. It could be short term moving averages, stochastic, moving average convergence divergence (MACD) or overbought level as indicated by relative strength index (RSI). For example, if a breakdown of support level (S1, S2 or S3) is accompanied with stock price also moving below its short term moving average or stochastic on daily charts giving a sell signal, it would add to weightage to the decision of taking a short trade.