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Do you know what is recursion? Is it possible for a stored procedure to call itself or recursive stored procedure? How many levels of SP nesting is possible?

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Answer:

Recursion is method of problem solving where the solution is arrived at by repetitively applying the logic and solution to the subsets of the problem.

Transact-SQL supports recursion. So, yes it is possible for a stored procedure to call itself.

Stored procedures and managed code references can be nested up to 32 levels.

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