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  • National Securities Depository Limited IPO Day 1: Check GMP, Subscription Status

    National Securities Depository Limited IPO Day 1: Check GMP, Subscription Status

    National Securities Depository Limited (NSDL)’s ₹4,011.60 crore IPO will be open from July 30 to August 1, 2025. It is a fully OFS of 5.01 crore shares. The price band has been fixed at ₹760–₹800 and the listing will take place on BSE on August 6. 

    NDSL IPO Day 1 Subscription Status

    NSDL IPO was subscribed a total of 0.78 times on the first day. The most enthusiasm was seen from NII i.e. non-institutional investors, where 1.32 times bidding took place. In the category of sNII (bid less than ₹ 10 lakh), the subscription reached 1.93 times. There was a strong response of 0.84 times in the retail category and 1.83 times in the employees’ category. At the same time, a slow response has been seen from QIB for the time being.

    Investor CategorySubscription 
    Anchor Investors1.00x
    Qualified Institutional Buyers (QIB)0.26x
    Non-Institutional Investors (NII)1.32x
    bNII (above ₹10 lakh)1.01x
    sNII (less than ₹10 lakh)1.93x
    Retail Individual Investors (RII)0.84x
    Employee Quota1.83x
    Total Subscriptions0.78x

    Total Application : 4,36,481

    Total Bid Amount : ₹2,192 crore

    Objective of the NDSL IPO

    The main objective of the NSDL IPO is to list the company’s equity shares on the BSE, so that the brand’s credibility and transparency in the market is strengthened. Since this is purely an offer for sale, the amount raised from this will not go to the company, but to the investors selling the shares.

    NDSL IPO GMP – Day 1 Update

    The latest grey market premium (GMP) of NSDL IPO is running at ₹135, which was updated at 3:56 pm on July 30, 2025. Considering the price band of ₹800, its estimated listing price is ₹935. That is, there can be a potential gain of about 16.88% per share on listing.

    DateGMP (₹)Est. Listing Price (₹)Gain (%)
    30 July 2025 (DAY-1)₹135₹93516.88%

    Disclaimer: The above GMP (Grey Market Premium) is just unofficial market information, which is not officially confirmed. These figures are shared for informational purposes only and investment decisions based on these should be based on the investor’s own research and discretion. We do not conduct, recommend or support any kind of transaction in the grey market.

    NDSL IPO – Key Details

    ParticularsDetails
    IPO Opening DateJuly 30, 2025
    IPO Closing DateAugust 1, 2025
    Issue Price Band₹760 to ₹800 per share
    Total Issue Size5,01,45,001 shares(aggregating up to ₹4,011.60 Cr)
    Listing PlatformBSE
    RegistrarMUFG Intime India Private Limited
    NDSL IPO DRHPClick Here
    NDSL IPO RHPClick Here

    Important Dates for NDSL IPO Allotment

    EventDate
    Tentative AllotmentAugust 4, 2025
    Refunds InitiationAugust 5, 2025
    Credit of Shares to DematAugust 5, 2025
    Listing Date on BSE August 6, 2025

    NDSL Overview

    National Securities Depository Limited (NSDL) is one of the oldest and most trusted depository companies in India. Established in 2012, the company operates as a SEBI registered Market Infrastructure Institution (MII). Its main function is to facilitate the holding and transfer of shares and other securities in electronic form. Through NSDL, investors get services like trade settlement, pledging, off-market transfer and corporate actions in demat accounts. Also, features like e-voting, Consolidated Account Statement (CAS) and Non-Disposal Undertaking (NDU) are also available.

    NDSL has two major subsidiaries

    • NDML, which handles projects such as e-governance, KYC and National Skills Registry, and
    • NSDL Payments Bank, which provides digital payments and micro-banking services.

    As of March 2025, NSDL has more than 3.94 crore active demat accounts. This company has reached more than 99% of pin codes across India and 186 countries. Its biggest strength is strong technology, secure systems and experienced leadership.

    Easy Steps to Apply for NDSL IPO via Pocketful

    Step 1 :  Install the Pocketful Trading App from Play Store or App Store

    Step 2 : Sign up and complete your KYC verification

    Step 3 : Go to the IPO section from the home page

    Step 4 : Look for “National Securities Depository Limited IPO” in the list

    Step 5 : Tap on Apply and enter your bid details

    Frequently Asked Questions (FAQs)

    1. What is the opening and closing date of the NDSL IPO?

      NDSL IPO is open on 30th July 2025 and will close on 1 August 2025.

    2. What is the price band of the NDSL IPO?

      Its price band is fixed from ₹760 to ₹800 per share.

    3. What is the GMP (Grey Market Premium) of the NDSL IPO today?

      The GMP on 30th July 2025 is ₹135, which leads to a possible listing price of ₹935.

    4. What is the total issue size of the NSDL IPO?

      The total issue size is ₹4,011.60 crore, which is entirely an Offer For Sale (OFS).

    5. What is the expected listing date of NDSL?

      This IPO is expected to be listed on BSE on August 6, 2025.

  • Aditya Infotech IPO Day 2 : Check GMP, Subscription Status

    Aditya Infotech IPO Day 2 : Check GMP, Subscription Status

    Aditya Infotech IPO size is ₹1,300 crore, comprising a fresh issue of ₹500 crore and an offer for sale of ₹800 crore. The issue is open from July 29 and will close on July 31, 2025. The price band is fixed at ₹640-₹675, and listing is expected on August 5 on BSE and NSE. Minimum investment for retail investors is ₹14,850.

    Aditya Infotech IPO Day 2 Subscription Status

    The IPO witnessed the highest enthusiasm from retail investors, with subscriptions reaching 21.27 times the allotted quota. In contrast, the response from Qualified Institutional Buyers (QIBs) remained subdued at just 0.25 times. The Non-Institutional Investor (NII) segment saw a mixed trend, with small NIIs (sNII) subscribing 15.75 times, while big NIIs (bNII) came in lower at 10.25 times. Meanwhile, the employee quota was subscribed 3.67 times, taking the overall subscription level to 7.27 times.

    Investor CategorySubscription (x)
    Qualified Institutional Buyers (QIB)0.25x
    Non-Institutional Investors (NII)12.08x
    bNII (above ₹10 lakh)10.25x
    sNII (less than ₹10 lakh)15.75x
    Retail Individual Investors (RII)21.27x
    Employee Quota3.67x
    Total Subscriptions7.27x

    Total Applications: 15,26,189

    Total Bid Amount: ₹5,219.62 crore (approx)

    Objective of the Aditya Infotech IPO

    The funds raised from the Aditya Infotech IPO will be used by the company to repay some of its existing debt and meet general corporate needs. The table below gives the complete details of the company’s fund use:

    Use of IPO ProceedsAmount (₹ Cr)
    Prepayment and/or part payment of certain borrowings taken by the Company375.00
    General corporate useNot mentioned

    Aditya Infotech IPO GMP – Day 2 Update

    The grey market premium (GMP) of Aditya Infotech IPO is running at ₹285 today i.e. 30th July 2025. Adding the upper level of the price band of ₹675, its estimated listing price can be ₹960, which is expected to give a potential premium of around 42.22% per share.

    DateGMP (₹)Est. Listing Price (₹)Gain (%)
    30 July 2025 (DAY-2)₹285₹96042.22%.

    GMP has seen consistent strength in the last 4 days, due to which there is a positive sentiment in the market. So far, GMP has been in the range of ₹210 to ₹285, which indicates the possibility of a strong listing.

    Disclaimer: The above GMP (Grey Market Premium) is just unofficial market information, which is not officially confirmed. These figures are shared for informational purposes only and investment decisions based on these should be based on the investor’s own research and discretion. We do not conduct, recommend or support any kind of transaction in the grey market.

    Aditya Infotech IPO – Key Details

    ParticularsDetails
    IPO Opening DateJuly 29, 2025
    IPO Closing DateJuly 31, 2025
    Issue Price Band₹640 to ₹675 per share
    Total Issue Size1,92,59,258 shares(aggregating up to ₹1,300.00 Cr)
    Listing PlatformBSE, NSE
    RegistrarMUFG Intime India Private Limited
    Aditya Infotech IPO DRHPClick Here
    Aditya Infotech IPO RHPClick Here

    Important Dates for Aditya Infotech IPO Allotment

    EventDate
    Tentative AllotmentAugust 1, 2025
    Refunds InitiationAugust 4, 2025
    Credit of Shares to DematAugust 4, 2025
    Listing Date August 5, 2025

    Aditya Infotech Overview

    Aditya Infotech Limited (AIL) is a leading Indian company that manufactures video security and surveillance products and solutions under the brand ‘CP Plus’. The company’s portfolio is equipped with products such as smart home IoT cameras, HD analog systems, network cameras, body-worn and thermal cameras, long-range IR cameras and AI-based solutions (such as number plate recognition, people counting, heat mapping).In 2025, the company launched more than 2986 SKUs and sold its products in 550+ cities. AIL’s network is strong with 41 branch offices and 13 RMA centers. In addition, 1,000+ distributors and more than 2,100 system integrators increase its presence in Tier I to Tier III cities. The company has 10 warehouses spread across the country, located in cities like Delhi, Noida, Gurugram, Mumbai, Ahmedabad, Indore, Kolkata, Guwahati, Chennai and Bengaluru. Its main manufacturing unit is located in Kadapa, Andhra Pradesh.

    The strength of AIL is clearly reflected in its brand value, nationwide network and advanced production capabilities.

    Read Also: Aditya Infotech IPO Day 1: GMP & Subscription Status

    Easy Steps to Apply for Aditya Infotech IPO via Pocketful

    Step 1 :  Install the Pocketful Trading App from Play Store or App Store

    Step 2 : Sign up and complete your KYC verification

    Step 3 : Go to the IPO section from the home dashboard

    Step 4 : Look for “Aditya Infotech IPO” in the list

    Step 5 : Tap on Apply and enter your bid details

    Frequently Asked Questions (FAQs)

    1. What is the opening and closing date of Aditya Infotech IPO?

      Aditya Infotech IPO is open on 29th July 2025 and will close on 31st July 2025.

    2. What is the price band of Aditya Infotech IPO?

      Its price band is fixed from ₹640 to ₹675 per share.

    3. What is the GMP (Grey Market Premium) of Aditya Infotech IPO today?

      The GMP on 30th July 2025 is ₹285, which leads to a possible listing price of ₹960.

    4. What is the breakup of fresh issue and OFS in Aditya Infotech IPO?

      This includes a fresh issue of ₹500 crore and an offer for sale (OFS) of ₹800 crore.

    5. What is the expected listing date of Aditya Infotech?

      This IPO is expected to be listed on BSE and NSE on August 5, 2025.

  • Laxmi India Finance IPO Day 2: Check GMP, Subscription Status

    Laxmi India Finance IPO Day 2: Check GMP, Subscription Status

    Laxmi India Finance’s ₹254.26 crore book building IPO is open for subscription and will close on July 31, 2025. The issue comprises a fresh issue of ₹165.17 crore and an OFS of ₹89.09 crore. The price band is set at ₹150 – ₹158 and the lot size is 94 shares. Listing is expected on August 5 on NSE and BSE.

    Laxmi India Finance IPO Day 2 Subscription Status

    Laxmi India Finance IPO was subscribed a total of 0.89 times on the second day i.e. 30 July 2025. The response from retail investors was the strongest where the subscription reached 1.29 times, while the QIB and NII categories still witnessed slowness.

    Investor CategorySubscription (x)
    Qualified Institutional Buyers (QIB)0.45x
    Non-Institutional Investors (NII)0.52x
    bNII (above ₹10 lakh)0.38x
    sNII (less than ₹10 lakh)0.80x
    Retail Individual Investors (RII)1.29x
    Employee Quota1.02x
    Total Subscriptions0.89x

    Total Applications: 67,513

    Total Bid Amount: ₹158.29 Crore (Approx)

    Objective of the Laxmi India Finance IPO

    The company will use the money raised from this issue to expand its loan business. Its main focus is to provide finance to MSME and other retail segments.

    Use of IPO ProceedsAmount (₹ Cr)
    Augmentation of capital base for future lending (onward lending)143.00

    Laxmi India Finance IPO GMP – Day 2 Update

    The grey market premium (GMP) of Laxmi India Finance IPO is ₹3 today on July 30, 2025. Adding the upper level of the price band of ₹158 gives the estimated listing price of ₹161, i.e. a potential premium of about 1.90%.

    DateGMP (₹)Est. Listing Price (₹)Gain (%)
    30 July 2025 (DAY-2)31611.90%.

    Based on the last 7 sessions, GMP has been declining steadily from ₹18 to ₹3.

    Disclaimer: The above GMP (Grey Market Premium) is just unofficial market information, which is not officially confirmed. These figures are shared for informational purposes only and investment decisions based on these should be based on the investor’s own research and discretion. We do not conduct, recommend or support any kind of transaction in the grey market.

    Laxmi India Finance IPO – Key Details

    ParticularsDetails
    IPO Opening DateJuly 29, 2025
    IPO Closing DateJuly 31, 2025
    Issue Price Band₹150 to ₹158 per share
    Total Issue Size₹254.26 Cr (1.61 Cr shares)
    Listing PlatformNSE, BSE
    RegistrarMUFG Intime India Private Limited
    Laxmi India Finance IPO DRHPClick Here
    Laxmi India Finance IPO RHPClick Here

    Important Dates for Laxmi India Finance IPO Allotment

    EventDate
    Tentative AllotmentAugust 1, 2025
    Refunds InitiationAugust 4, 2025
    Credit of Shares to DematAugust 4, 2025 
    Listing Date August 5, 2025 

    Laxmi India Finance Overview

    Laxmi India Finance Limited was started in 1996. It is a non-banking financial company (NBFC) that provides MSME, vehicle and construction loans, especially targeting small businesses, first-time borrowers and rural areas. Under MSME finance, the company offers secured loans ranging from ₹50,000 to ₹25 lakh, mostly against residential or commercial property. Vehicle loans include finance for two-wheelers, tractors and commercial vehicles. Construction loans are also available on residential/commercial property, with a maximum tenure of 84 months.

    As of March 2025, the company’s assets under management stood at ₹1,277 crore, of which 76% is MSME loans. The customer base has crossed 35,000, and about 37% of these are first-time loan takers.It has 158 branches in Rajasthan, Gujarat, MP and Chhattisgarh. The company, which accesses funds from 47 banks and NBFCs, is growing steadily on the strength of strong underwriting, local reach and experienced management.

    Read Also: Laxmi India Finance IPO Day 1: GMP & Subscription Status

    Easy Steps to Apply for Laxmi India Finance IPO via Pocketful

    Step 1 :  Install the Pocketful Trading App from Play Store or App Store

    Step 2 : Sign up and complete your KYC requirements

    Step 3 : Go to the IPO section from the home page 

    Step 4 : Look for “Laxmi India Finance IPO” in the list

    Step 5 : Tap on Apply and enter your bid details

    Frequently Asked Questions (FAQs)

    1. What is the IPO date of Laxmi India Finance?

      This IPO will open on July 29, 2025 and close on July 31, 2025.

    2. What is the price band for Laxmi India Finance IPO?

      The price band has been fixed from ₹150 to ₹158 per share.

    3. What is the lot size and minimum investment?

      There are 94 shares in one lot. The minimum investment for retail investment is around ₹14,852.

    4. What is today’s GMP of Laxmi India Finance IPO?

      Today, on July 30, 2025, the GMP is ₹3.

    5. On which exchanges will the IPO list?

      The listing will take place on both NSE and BSE.

  • What is Range Bound Market?

    What is Range Bound Market?

    Have you ever seen a stock oscillating within a defined price range for weeks? It neither goes up nor down; it remains confined within those levels. Such a situation is called a range bound market. When a stock or index is stuck in a fixed trading range, it is called a range bound stock or range bound market. Most new traders get confused about what to do at such times to earn profits, but professionals know that this is the time to use range trading strategies. In today’s time, when the market patterns are changing trends frequently, such a strategy has become even more important.

    In this blog, we will learn about the range bound markets and range trading strategies to take advantage of these price movements.

    What is Range Bound Market?

    When a stock or index moves up and down in a fixed range and neither moves upwards nor falls lower, it is called a range bound market. In this situation, the price remains trapped between a fixed support and resistance level.

    How to identify the Range Bound Market?

    You can identify a range-bound market by:

    • The price repeatedly moves between the same support and resistance
    • The market lacks directional momentum
    • Traders do not see long term trends, but there are profitable opportunities in the short term
    • In a trending market, the price continuously moves up or down
    • In a range bound market, the price keeps moving in a horizontal range
    • In a trending market, momentum indicators like MACD, Moving Average are more effective
    • Whereas in a range bound market, oscillators like RSI, Stochastic give more accurate signals

    Example : Suppose Nifty 50 moves between 24,500 and 25,000 for some time neither going up nor down. The price stops near 25,000 every time and then comes back to 24,500. This kind of behavior reflects a typical range bound market. In such a situation, traders who identify this range early can earn consistent profits by buying near support and selling near resistance. This is known as range trading and this strategy is even more effective when there is no major trend in the market.

    Characteristics of a Trading Range

    It is important to correctly identify a trading range before you can profitably execute buy and sell signals. Some of the characteristics of a trading range are given below:

    • Clear support and resistance levels : The first sign of any trading range is that the price repeatedly moves up and down between a certain support and resistance. These levels appear as virtual horizontal lines on the chart and are often based on old reversal zones.
    • Weak trend strength (Low ADX Value) : If the value of the ADX indicator is 20 or below, it means that there is no strong trend in the market. In this situation, the price remains sideways and it is a sign of a range bound market.
    • Flat Moving Averages : When the 50-day or 200-day moving averages appear in a straight line and there is no specific direction in them, it indicates that the market is stuck in a range.
    • Volume behavior : The trading volume remains low in the middle of the range and high near support and resistance. This indicates that traders are active near the support and resistance.

    Range Trading Strategies

    Some of the strategies and tips to trade range bound markets profitably have been given below:

    • Multiple Touch Confirmation : Use this strategy when price has tested the support and resistance levels at least two or three times. It is practical to create a trading position on the third rejection from support or resistance as it is considered a strong reversal signal. Traders who make consistent profits rely on this confirmation.
    • Channel (Diagonal) Range Trading : If support and resistance appear as sloping trendlines (ascending or descending channel), traders buy or sell near those trendlines. This is called diagonal or channel range trading, which can also capture some momentum. 
    • False Breakouts : Markets often feature situations where the price briefly crosses the support or resistance but is unable to sustain and comes back inside the range. At such times, traders can create trading positions in the opposite direction such as shorting the stock when price moves above the resistance squaring off positions when the price comes back inside the range. This strategy is used by professional traders.
    • Range Exhaustion & Consolidation Plays : When the price continuously bounces within the range and shows smaller candles and low volatility, it is a sign of exhaustion. In this situation, traders anticipate that a reversal may occur, and trade in the opposite direction after price rejection.
    ParametersRange Bound StocksTrending Stocks
    Price MovementMoves up and down between a defined support and resistanceMoves consistently in an uptrend or downtrend direction
    Trend PatternThere is no clear trend, there is sideways movementHigher highs and higher lows or lower highs and lower lows are formed
    Common SectorsFMCG, PSU, UtilitiesIT, Pharma, Auto
    Best Indicators to UseRSI, Stochastic Oscillator, Bollinger BandsMACD, Moving Averages, ADX
    Trading StrategyBuy at support and sell at resistanceIt is better to follow the trend using breakout or pullback strategy
    Risk-Reward RatioIt is limited but provides more consistent returnsRisk is slightly higher, but potential returns may also be higher

    Why Do Markets Become Range Bound?

    The various reasons behind why markets exhibit rangebound behaviour has been discussed below:

    • Fundamental Uncertainty : The market sometimes waits for a major economic or corporate event such as earnings season, central bank policy meetings, or international crises. At such times, investors become cautious and avoid taking directional trades, causing the price to move in a limited range.
    • Trend Exhaustion : When an asset has shown continuous bullish or bearish trend, it goes into exhaustion after a period of time. This situation is called the ‘consolidation phase’, where both buyers and sellers are cautious. In such a phase, the price repeatedly moves between support and resistance as neither bulls nor bears take control.
    • Institutional Indecision : Institutional investors and large traders, when confused about the direction of the market, adopt a wait and watch approach. This reduces volume and reduces volatility, due to which the market becomes sideways or range-bound.
    • Preparation for Bigger Moves : Range-bound markets are often seen as a quiet storm. This is the time when the market is accumulating energy in preparation for a big breakout or breakdown. So these phases are not about making money, but about carefully understanding the levels and preparing.

    Risks and Limitations of Range Trading

    The risks and limitations of doing range trading are given below:

    • False Breakouts leading to wrong decisions : The most common risk in range trading is the price suddenly moving out of the range and then returning. This is called a false breakout, which can hit your stop losses repeatedly.
    • Sudden changes due to news events : Due to sudden economic reports, such as RBI policy or global news, the market can move rapidly in one direction, which can cause losses.
    • Missing the trend : The market sometimes moves out of the range and enters a new trend. In such a situation, range traders often miss out on that big move due to which a big opportunity to profit is lost.
    • Timing Risk : Even a slight delay in entry or exit can reduce profit or increase loss. Correct timing is very critical in range trading.
    • Less profit in narrow ranges : If the market range is very tight, then the profit potential is very less. This results in low returns and sometimes the risk-reward is not worthwhile.
    • More Trading, More Charges : Range trading involves frequent buying-selling, which increases the cost of brokerage, taxes and slippage which can directly reduce net profit.
    • Low Volume : Sometimes liquidity is low in a sideways market. Due to this, orders are not executed quickly and you may have to face unwanted slippage.
    • Risk of Overtrading : Many traders start trading compulsively after seeing entry signals repeatedly in the range. This can lead to overtrading, decision fatigue and losses.
    • Effect on Psychology : Patience is most important in range trading, but constant sideways movement can lead to frustration, fear or overconfidence. These emotions can force you to make impulsive decisions.

    Conclusion

    Range trading requires market understanding, discipline and the art of taking timely decisions. It can be beneficial for traders who want to earn with consistency even in calm phases of the market. But like every strategy, there are hidden risks in it too, which should be understood before doing range trading. If you understand price levels, market psychology and breakout risks well, then you can make good opportunities even in range bound markets – all you need is patience and a clear trading strategy. However, it is advised to consult a financial advisor before range trading.

    S.NO.Check Out These Interesting Posts You Might Enjoy!
    1What is Algo Trading?
    2What is Spread Trading?
    3What is Quantitative Trading?
    4Arbitrage Trading in India – How Does it Work and Strategies
    5Silver Futures Trading – Meaning, Benefits and Risks

    Frequently Asked Questions (FAQs)

    1. What is the meaning of the range bound market?

      When a stock or index moves between a fixed levels and no major trend is seen, it is called a range bound market.

    2. Are range bound stocks good for trading?

      Yes, if you identify support and resistance correctly, then short-term profits can be earned.

    3. Is range trading suitable for beginners?

      This can be a good trading strategy for beginner traders, but some market knowledge and paper trading is necessary before using actual capital.

    4. How long does a stock stay in range?

      A stock can remain in the range from a few days to several weeks.

    5. What is the biggest risk in range trading?

      The biggest risk in range trading is a breakout, i.e.,  when the price moves out of the trading range.

  • What is Intraday Margin Trading?

    What is Intraday Margin Trading?

    Have you ever wondered how traders make huge profits from numerous minor price fluctuations in stock prices over a single trading day? Intraday margin enables a trader to trade in larger volumes with limited capital, helping them earn profits even with a small capital. However, using intraday margin also involves higher risks.

    This blog will explain intraday margin, its benefits and drawbacks, and the safety measures that all traders should take.

    Meaning of Intraday Margin Trading

    Intraday margin is the leverage provided by a broker to their clients, which allows them to buy or sell stocks worth more than the funds available in their trading account. However, the trading positions created using intraday margin have to be closed by the client on the same trading day. Using the intraday margin facility, a trader can potentially increase their gains. 

    Features of Intraday Margin Trading

    The key features of intraday margin are as follows:

    1. Same Day Square Off: The position taken by the client has to be closed on the same day.
    2. Auto Square Off: The position of the client can automatically be squared off before the end of the trading session of a particular day.
    3. High Profit: Using intraday margins can increase the profitability of the investor, as they can use the leverage to purchase stocks.

    How Does Intraday Margin Trading Work?

    The process of how intraday margin works is as follows:

    1. Select the Intraday Option: Instead of choosing “Delivery” when placing a trade, the trader chooses “Intraday” or “MIS (Margin Intraday Square-off)”. This means that the position will be closed that same day.
    2. The broker provides leverage: The broker provides leverage (for example, 5x to 20x) according to the stock’s volatility and liquidity.
    3. Executing Trade: The trader buys or sells shares using the available margin. For example, a trader can use ₹10,000 as a margin to buy 1,000 shares of a stock priced at ₹100 if 10x leverage is available.
    4. Monitoring the Trade: Throughout the trading day, the trader watches price movements to book profits or limit losses.
    5. Squaring Off Position: The trader must manually square off the position before the market closes; otherwise, the broker will execute it automatically.

    Example of Intraday Margin Trading

    Suppose you have ₹10,000 in your trading account, and you want to buy 100 shares of XYZ, trading at around ₹1,000 per share. Suppose you use the intraday margin with 10x leverage provided by your broker. Let’s calculate it

    Total Amount Required to Purchase 100 Shares = ₹1000 * 100 = ₹1,00,000

    Your broker will provide you with 10x leverage, hence your trading limit will increase to 1,00,000. Now you can purchase 100 shares on an intraday basis.

    Let’s assume you have purchased 100 shares at 10 a.m., and around 2 p.m. stock price rises to ₹1,050, and you sell your shares at ₹1,050. Now your profit will be calculated as follows:

    Profit = (Selling Price – Purchase Price) * No. of Shares

    = ( ₹1,050 – ₹1,000 ) * 100

    = ₹50 * 100

    = ₹5,000

    Hence, your total profit will be ₹5,000, and it was earned on the capital of ₹10,000. Therefore, your profit was 50% on your invested capital.

    Benefits of Using Intraday Margin Trading

    The key benefits of using intraday margin are as follows:

    1. Potential for Higher Returns: Traders with limited funds can take on large positions. For example, using 10x leverage to execute a ₹1,00,000 trade with ₹10,000 might result in higher profits.
    2. Liquidity: Intraday trades usually involve highly liquid stocks or indices, which ensure quick entry and exit without significant price fluctuations.
    3. Short-Term Profit: Through intraday margin trading, traders can profit from short-term market trends and volatility without holding positions overnight.
    4. No Delivery Charges: Since trades are squared off on the same day, demat settlement is not necessary, avoiding delivery-related fees such as transaction taxes and DP charges that apply to delivery trades.

    Read Also: Top Tips for Successful Margin Trading in India

    Risk of Using Intraday Margin Trading

    There is a significant risk of using intraday margin; a few of such risks are mentioned below:

    1. Increased Losses: Leverage increases losses in the same way that it increases profits. Even a slight decline in the stock price can result in significant losses.
    2. Volatility of the Market: Because of the extreme volatility of intraday markets, profitable trades can be quickly converted into losing ones by unexpected price changes caused by news, earnings releases, or market sentiment.
    3. Margin Call: A margin call, which requires the trader to deposit additional funds immediately, may be given by the broker if the value of a trade falls rapidly. And if you don’t add the margin amount, you might have to square off at a loss.
    4. Limited to Particular Stocks: Not every stock is eligible for margin. Brokers generally restrict trades by limiting margin trading to large-cap and highly liquid stocks.

    Precautions to Use Intraday Margin Trading

    An investor should take the following precautions before using intraday margin:

    1. Stop Loss: In case the stock moves against your position, always set a stop-loss to minimise your losses.
    2. Tracking: It is necessary to continuously monitor positions and market trends when doing intraday trading.
    3. Understanding Policy: In order to prevent unexpected difficulties during the trade, be informed of your broker’s leverage guidelines, auto square-off timings, and eligible stock list.

    Read Also: Top Indicators Used By Intraday Traders In Scalping

    Conclusion

    On a concluding note, for active traders with limited capital who desire to make significant profits from daily market movements, intraday margin trading can be a very effective tool. Increased exposure and the possibility of greater profits are made possible by the leverage it offers. However, a greater risk is associated with a higher reward. Traders need to approach intraday margin with careful planning, appropriate risk management, and a thorough knowledge of the broker’s policies. It is effective for people who can keep a close eye on the markets and act immediately. Intraday margin trading, when used properly, can be a useful tool for a trader; however, it is advisable to consult your investment advisor before making any investment decision.

    S.NO.Check Out These Interesting Posts You Might Enjoy!
    1Difference Between Intraday Trading and Delivery Trading
    2Understanding Intraday Trading Timings
    3How to Choose Stocks for Intraday the Right Way?
    4Top 10 Intraday Trading Strategies & Tips for Beginners
    5How to Use Pivot Points in Intraday Trading?
    6Bank NIFTY Intraday Options Trading: Steps, Strategies & Tips
    7Value Investing Vs Intraday Trading: Which Is More Profitable?

    Frequently Asked Questions (FAQs)

    1. What is the intraday margin?

      Brokers provide a facility called intraday margin, which allows traders to use leverage to buy or sell stocks with a small percentage of the total trade value. It is necessary to settle those positions on the same trading day.

    2. Is intraday margin available for all stocks?

      No. Brokers only offer margin on a limited number of volatile and liquid stocks, typically as per the regulatory guidelines.

    3. What will happen if I do not square off my intraday position?

      In case you do not exit your intraday position before the cut-off time defined by your broker, it will automatically square off the position.

    4. Can I use the intraday margin provided by the broker for short-selling?

      Yes, the intraday margin provided by the broker can be used for short-selling.

    5. Do I have to open a separate account to use the intraday trading margin?

      No, you can use your regular trading account to use the intraday trading margin.

  • What is Operating Profit Margin? 

    What is Operating Profit Margin? 

    If you have decided to invest in stocks and are looking to identify a company to invest in, then you need to compare companies based on various parameters. One of such parameters is the operating profit margin. 

    In this blog, we will explain the concept of operating profit margin, along with the formula and an example.

    Meaning of Operating Profit Margin

    Operating profit margin is a financial metric that reflects the percentage of a company’s revenue that is left after paying all the operating expenses related to production, including wages, raw materials, etc. before paying interest or taxes. 

    Features of Operating Profit Margin

    The key features of operating profit margin are as follows:

    1. Business Profitability: Operating profit margin reflects the efficiency of a company in generating profit from its core business operations.
    2. Comparative Analysis: The operating profit margin is generally used to compare the profit of the company with its competitors.
    3. Operating Expenses: Only items related to operating expenses are considered when calculating the operating profit.

    Formula of Operating Profit Margin

    The formula to calculate the operating profit margin is as follows:

    Operating Profit Margin = (Operating Profit/Revenue)*100

    Where;

    Operating Profit = Revenue – COGS – Operating Expenses

    Revenue = Total income earned by the company before any type of cost or expenses is deducted.

    Example of Operating Profit Margin

    Let’s understand the example of operating profit margin with an example.

    Company XYZ has made a sale of 

    • Revenue = ₹10,00,000 
    • Cost of Goods Sold = ₹2,00,000
    • Operating Expenses = ₹3,00,000 

    Now we will have to calculate the operating profit.
    Operating Profit = Revenue – COGS – Operating Expenses

    Operating Profit = ₹10,00,000 – ₹2,00,000 – ₹3,00,000 = ₹5,00,000

    The formula to calculate the operating profit margin is 

    Operating Profit Margin = Operating Profit/Revenue*100

    where,

    Operating Profit = ₹5,00,000

    Revenue = ₹10,00,000

    Operating Profit Margin = 5,00,000/10,00,000*100 = 50%
    Hence, the operating profit margin of XYZ Limited is 50%.

    Importance of Operating Profit Margin

    The importance of operating profit margin is mentioned below:

    1. Evaluation: Operating profit margin allows us to evaluate the efficiency of a company based on its operations. A higher margin shows that the company has lower input costs and higher sales.
    2. Profitability: A higher operating margin will increase the net profitability of the company.
    3. Competitive Advantage: When comparing companies with their peers, operating margins play an important role, as companies with lower profit margins are considered a financial trouble.
    4. Decision Making: Based on the operating margins, the company can decide the prices of their products and make decisions related to cost-cutting.

    Factors Affecting Operating Profit Margin

    The factors mentioned below will affect the operating profit margin:

    1. Raw Material: The input cost or the cost of raw material used by the company in producing goods can affect the operating profit margin. The higher the cost, the lower the profit margin.
    2. Labour Cost: If the labour cost is high, the operating profit will be less.
    3. Availability of Resources: If the resources are not available readily, then it can lead to an increase in production costs.
    4. Distribution Channel: If the channel through which the raw material is supplied or goods get delivered gets disrupted, then the cost of production will increase.

    Conclusion

    On a concluding note, operating profit margin plays an important role in evaluating the company’s efficiency in generating profits from its core business operations. Improving or high operating profit margin posted by the company over time indicates efficient management, effective cost control, and a competitive edge over other companies. However, investing based only on the operating profit margin is not a wise decision. Therefore, it is advisable to consult your investment advisor before making any investment decision.

    S.NO.Check Out These Interesting Posts You Might Enjoy!
    1Margin Pledge: Meaning, Risks, And Benefits
    2Margin Call: – Definition and Formula
    3Top Tips for Successful Margin Trading in India
    4What is MTF (Margin Trading Facility)?
    5Lowest MTF Interest Rate Brokers in India

    Frequently Asked Questions (FAQs)

    1. What is the formula to calculate operating profit margin?

      The formula to calculate operating profit margin is Operating Profit/Revenue*100.

    2. What is Operating Profit Margin?

      The operating profit margin is a financial metric used by investors to evaluate the operating profitability of a company, or the percentage of revenue left after covering the operational expenses of the company.

    3. What percentage is considered a good operating profit margin?

      The ideal operating profit margin depends on the industry in which the company is operating. A 15-20% of operating profit margins is considered good for manufacturing companies and it can be more than 25% in the service-oriented industry.

    4. Can the operating profit margin be negative?

      Yes, if the company’s operating expenses are higher than the company’s revenue, then operating profit margin can be negative, indicating that the company is in financial trouble.

    5. Can I invest in a company only because it has a higher profit margin?

      Yes, you can invest in a company with a higher profit margin. However, it is advisable to consider more parameters before making any investment decision as investment in stocks solely based on operating profit margins can result in losses.

  • Aditya Infotech IPO Day 1: GMP & Subscription Status

    Aditya Infotech IPO Day 1: GMP & Subscription Status

    Aditya Infotech IPO size is ₹1,300 crore, comprising a fresh issue of ₹500 crore and an offer for sale of ₹800 crore. The issue is open from July 29, 2025 and will close on July 31, 2025. The price band is fixed at ₹640-₹675, and listing is expected on August 5 on BSE and NSE. Minimum investment for retail investors is ₹14,850.

    Aditya Infotech IPO Day 1 Subscription Status

    The response from retail investors was the strongest, with subscription reaching 6.93 times. At the same time, a very slow trend was seen from the QIB (Qualified Institutional Buyers) category and a mixed response was seen from NII (High Net Worth Investors).

    Investor CategorySubscription (x)
    Qualified Institutional Buyers (QIB)0.01x
    Non-Institutional Investors (NII)3.33x
    bNII (above ₹10 lakh)2.80x
    sNII (less than ₹10 lakh)4.40x
    Retail Individual Investors (RII)6.93x
    Employee Quota1.57x
    Total Subscriptions2.17x

    Total Applications: 4,92,936

    Total Bid Amount: ₹1,558.29 crore 

    Objective of the Aditya Infotech IPO

    The funds raised from the Aditya Infotech IPO will be used by the company to repay some of its existing debt and meet general corporate needs. The table below gives the complete details of the company’s fund use:

    Use of IPO ProceedsAmount (₹ Cr)
    Prepayment and/or repayment of borrowings taken by the Company375.00
    General corporate purposes Not mentioned

    Aditya Infotech IPO GMP – Day 1 Update

    The grey market premium (GMP) of Aditya Infotech IPO is running at ₹273 today i.e. 29th July 2025. Adding to the upper level of the price band of ₹675, its estimated listing price can be ₹948, which is expected to give a potential premium of around 40.44% per share.

    DateGMP (₹)Est. Listing Price (₹)Gain (%)
    29 July 2025 (DAY-1)₹273₹94840.44%.

    GMP has been consistently above ₹200 in the last 6 trading sessions, due to which there is a positive sentiment in the market. So far, GMP has been in the range of ₹210 to ₹273, which indicates the possibility of a strong listing.

    Disclaimer: The above GMP (Grey Market Premium) is just unofficial market information, which is not officially confirmed. These figures are shared for informational purposes only and investment decisions based on these should be based on the investor’s own research and discretion. We do not conduct, recommend or support any kind of transaction in the grey market.

    Aditya Infotech IPO – Key Details

    ParticularsDetails
    IPO Opening DateJuly 29, 2025
    IPO Closing DateJuly 31, 2025
    Issue Price Band₹640 to ₹675 per share
    Total Issue Size1,92,59,258 shares(aggregating up to ₹1,300.00 Cr)
    Listing PlatformBSE, NSE
    RegistrarMUFG Intime India Private Limited
    Aditya Infotech IPO DRHPClick Here
    Aditya Infotech IPO RHPClick Here

    Important Dates for Aditya Infotech IPO Allotment

    EventDate
    Tentative AllotmentAugust 1, 2025
    Refunds InitiationAugust 4, 2025
    Credit of Shares to DematAug 4, 2025
    Listing Date Aug 5, 2025 

    Aditya Infotech Overview

    Aditya Infotech Limited (AIL) is a leading Indian company that manufactures video security and surveillance products and solutions under the brand ‘CP Plus’. The company’s portfolio is equipped with products such as smart home IoT cameras, HD analog systems, network cameras, body-worn and thermal cameras, long-range IR cameras and AI-based solutions (such as number plate recognition, people counting, heat mapping).In 2025, the company launched more than 2986 SKUs and sold its products in 550+ cities. AIL’s network is strong with 41 branch offices and 13 RMA centers. In addition, 1,000+ distributors and more than 2,100 system integrators increase its presence in Tier I to Tier III cities. The company has 10 warehouses spread across the country, located in cities like Delhi, Noida, Gurugram, Mumbai, Ahmedabad, Indore, Kolkata, Guwahati, Chennai and Bengaluru. Its main manufacturing unit is located in Kadapa, Andhra Pradesh.

    The strength of AIL is clearly reflected in its brand value, nationwide network and advanced production capabilities.

    Easy Steps to Apply for Aditya Infotech IPO via Pocketful

    Step 1 :  Install the Pocketful App from Play Store or App Store

    Step 2 : Sign up and complete your KYC requirements

    Step 3 : Go to the IPO section on the home page

    Step 4 : Look for “Aditya Infotech IPO” in the list

    Step 5 : Tap on Apply and enter your bid details

    Frequently Asked Questions (FAQs)

    1. What is the opening and closing date of Aditya Infotech IPO?

      Aditya Infotech IPO is open on 29th July 2025 and will close on 31st July 2025.

    2. What is the price band of Aditya Infotech IPO?

      Its price band is fixed from ₹640 to ₹675 per share.

    3. What is the GMP (Grey Market Premium) of Aditya Infotech IPO today?

      The GMP on 29th July 2025 is ₹273, which leads to a possible listing price of ₹948.

    4. What is the breakup of fresh issue and OFS in Aditya Infotech IPO?

      This includes a fresh issue of ₹500 crore and an offer for sale (OFS) of ₹800 crore.

    5. What is the expected listing date of Aditya Infotech?

      This IPO is expected to be listed on BSE and NSE on August 5, 2025.

  • Laxmi India Finance IPO Day 1: GMP & Subscription Status

    Laxmi India Finance IPO Day 1: GMP & Subscription Status

    Laxmi India Finance’s ₹254.26 crore book building IPO has opened for subscription and will close on July 31, 2025. The issue comprises a fresh issue of ₹165.17 crore and an OFS of ₹89.09 crore. The price band is set at ₹150 – ₹158 and the lot size is 94 shares. Listing is expected on August 5 on NSE and BSE.

    Laxmi India Finance IPO Day 1 Subscription Status

    Laxmi India Finance IPO was subscribed a total of 0.37 times on the first day. The response from retail investors was better than other categories, where the subscription reached 0.61 times. At the same time, a slow response was seen in the QIB (Qualified Institutions) and NII (High Net Worth Investors) categories.

    Investor CategorySubscription (x)
    Qualified Institutional Buyers (QIB)0.10x
    Non-Institutional Investors (NII)0.19x
    bNII (above ₹10 lakh)0.10x
    sNII (less than ₹10 lakh)0.38x
    Retail Individual Investors (RII)0.61x
    Employee Quota0.41x
    Total Subscriptions0.37x

    Total Applications: 32,050

    Total Bid Amount: ₹67.00 Crore (Approx)

    Objective of the Laxmi India Finance IPO

    The company will use the money raised from this issue to expand its loan business. Its main focus is to provide finance to MSME and other retail segments.

    Use of IPO ProceedsAmount (₹ Cr)
    Augmentation of capital base for future lending (onward lending)143.00

    Laxmi India Finance IPO GMP – Day 1 Update

    The grey market premium (GMP) of Laxmi India Finance IPO is running at ₹7 today i.e. 29th July 2025. Adding the upper level of the price band at ₹ 158, the estimated listing price can be ₹165, i.e. a potential premium of about 4.33%.

    DateGMP (₹)Est. Listing Price (₹)Gain (%)
    29 July 2025 (DAY-1)₹7₹1654.43%.

    Based on the last 7 sessions, GMP has been declining steadily from ₹18 to ₹7.

    Disclaimer: The above GMP (Grey Market Premium) is just unofficial market information. These figures are shared for informational purposes only and investment decisions based on these should be based on the investor’s own research and discretion. We do not conduct, recommend or support any kind of transaction in the grey market.

    Laxmi India Finance IPO – Key Details

    ParticularsDetails
    IPO Opening DateJuly 29, 2025
    IPO Closing DateJuly 31, 2025
    Issue Price Band₹150 to ₹158 per share
    Total Issue Size₹254.26 Cr (1.61 Cr shares)
    Listing PlatformNSE, BSE
    RegistrarMUFG Intime India Private Limited
    Laxmi India Finance IPO DRHPClick Here
    Laxmi India Finance IPO RHPClick Here

    Important Dates for Laxmi India Finance IPO Allotment

    EventDate
    Tentative AllotmentAugust 1, 2025
    Refunds InitiationAugust 4, 2025
    Credit of Shares to DematAugust 4, 2025 
    Listing Date Aug 5, 2025 

    Laxmi India Finance Overview

    Laxmi India Finance Limited was started in 1996. It is a non-banking financial company (NBFC) that provides MSME, vehicle and construction loans, especially targeting small businesses, first-time borrowers and rural areas. Under MSME finance, the company offers secured loans ranging from ₹50,000 to ₹25 lakh, mostly against residential or commercial property. Vehicle loans include finance for two-wheelers, tractors and commercial vehicles. Construction loans are also available on residential/commercial property, with a maximum tenure of 84 months.

    As of March 2025, the company’s assets under management stood at ₹1,277 crore, of which 76% is MSME loans. The customer base has crossed 35,000, and about 37% of these are first-time loan takers.It has 158 branches in Rajasthan, Gujarat, MP and Chhattisgarh. The company, which accesses funds from 47 banks and NBFCs, is growing steadily on the strength of strong underwriting, local reach and experienced management.

    Easy Steps to Apply for Laxmi India Finance IPO via Pocketful

    Step 1 :  Install the Pocketful App from Play Store or App Store

    Step 2 : Sign up and complete your KYC requirements

    Step 3 : Go to the IPO section on the home page

    Step 4 : Look for “Laxmi India Finance IPO” in the list

    Step 5 : Tap on Apply and enter your bid details

    Frequently Asked Questions (FAQs)

    1. What is the IPO date of Laxmi India Finance?

      This IPO will open on July 29, 2025 and close on July 31, 2025.

    2. What is the price band for Laxmi India Finance IPO?

      The price band has been fixed from ₹150 to ₹158 per share.

    3. What is the lot size and minimum investment?

      There are 94 shares in one lot. The minimum investment for retail investment is around ₹14,852.

    4. What is today’s GMP of Laxmi India Finance IPO?

      Today, on July 28, 2025, the GMP is ₹7.

    5. On which exchanges will the IPO list?

      The listing will take place on both NSE and BSE.

  • What is Stock Margin?

    What is Stock Margin?

    One way to take bigger positions and potentially increase your profits in the stock market with limited capital is by using stock margin, also known as Margin Trading Facility (MTF). Many brokers offer this feature, allowing investors to increase their buying power. However, despite its popularity, a lot of traders use margin without fully understanding how it works. In this blog, we’ll break down what stock margin really is, how it works, and the risks you should be aware of before using it.

    What is Stock Margin?

    Stock margin, popularly known as Margin Trading Facility (MTF), is a service offered by brokers that allows you to borrow funds to increase your investment capacity. In simple terms, you can buy shares worth more than the actual funds available in your account.

    This is generally called leverage trading or margin trading. It is especially useful for those who want to trade in large volumes in the short term, but it also comes with risk as losses can also increase.

    Example: You have ₹1 lakh and want to purchase shares worth ₹5 lakhs, then the broker can provide the remaining ₹4 lakhs. This means that now you can buy shares worth up to ₹5 lakh. 

    How MTF Works : In the Margin Trading Facility (MTF), the investor can trade on the value of the entire transaction by investing a partial amount in his trading account. The remaining amount is lent by the broker, which has to be repaid with interest.

    How the trade is done:

    • You deposit some percentage of the total amount (Initial Margin).
    • The broker lends the remaining amount.
    • You buy shares and can sell them whenever you want.
    • The loan has to be repaid within the stipulated time, otherwise the broker can sell your shares.

    As per SEBI rules, MTF is available only on selected stocks and the minimum margin and interest rates in it are decided by the broker.

    If you want to do margin trading at a low cost, Pocketful is a great option. It offers margin trading at one of the lowest interest rates in India, starting at just 5.99% p.a., and you also get up to 5x intraday leverage. Pocketful is especially suited for investors who want to gain more exposure in a smart way, all on a fast, simple and reliable platform.

    Check Out – Stocks Available for MTF

    Types of Margins in Stock Trading

    There are many types of margins in margin trading, and each has a different role. If you want to trade seriously in the stock market, it is very important to understand them correctly. Below are the four major types of margins that are prevalent in the Indian market and are regulated by SEBI:

    • Initial Margin : This is the minimum amount that you have to keep in your account to open a position. As per SEBI rules, it is decided on the basis of VaR (Value at Risk) and ELM (Extreme Loss Margin). Its purpose is to ensure that the trader has enough capital to bear the initial risk.
    • Maintenance Margin : This is the minimum balance that you have to maintain in your account, so that you can hold an open position. If your funds go below this level, the broker may send a margin call and automatically close your position if required.
    • SPAN Margin (F&O only) : The SPAN (Standard Portfolio Analysis of Risk) margin is applicable only for the Futures & Options (F&O) segment. This margin is calculated by NSE through a simulation tool and is based on the risk of the entire portfolio, not just a single trade.
    • Exposure Margin : This is an additional safety margin mandated by SEBI and exchanges keeping in mind traders and market stability. It is charged over and above the SPAN and is generally applicable to all F&O trades. It is intended to provide extra protection during times of high volatility.

    Read Also: What is MTF (Margin Trading Facility)?

    Stock Margin vs Cash Trading

    FeaturesStock Margin TradingCash Trading
    Investment Amount Required Lower as broker provides additional fundingShares can only be purchased according to the amount of money you have in your trading account
    RiskHigh risk Low risk
    ReturnsHigher as profits increase quickly, but with increased riskStable returns
    InterestThe broker charges interest on the borrowed amount No interest has to be paid
    Delivery optionSome brokers allow delivery, but interest appliesUpon making full payment, shares are transferred to your demat account
    Margin Call RiskIf the price goes down the broker may ask for extra fundsThere are no margin calls
    Holding PeriodDepends on the policy of the broker.Can be held for the long term without any extra charges
    Better for whom?For active, short-term or intraday tradersFor long term investors and beginners

    Pros and Cons of Using Stock Margin

    Margin trading is a tool that can be beneficial if used wisely, but a careless trade can also cause losses. Let’s know some of its major benefits and potential disadvantages, in simple language:

    Pros of Stock Margin

    • Higher profit potential with less capital : With the help of margin, you can buy shares of large value even with less capital. This is especially beneficial for those who have limited funds but want more exposure.
    • Opportunity to increase returns : If your trade goes in the right direction, then due to margin you can get more profit than usual.
    • Best for short term traders : Margin is a useful tool for those who trade intraday or for a few days because with this they can take many positions quickly.
    • Smart use of capital : Due to margin, you can use your limited capital in different trades, which gives you a chance to take more profit.

    Cons of Stock Margin

    • Amplified Losses : While margin increases profits, it can also cause losses quickly. Even a little wrong move can prove to be costly.
    • Margin call risk : If the value of the stock falls, the broker may ask you to increase the money (margin call). If you do not respond on time, your shares will be sold.
    • Interest and charges : Interest has to be paid on the money borrowed. If the trade remains open for a long time, this interest can eat into your earnings.
    • Mental pressure : Many times trading on credit increases fear and anxiety, which can lead to wrong decisions.

    Read Also: Lowest MTF Interest Rate Brokers in India | Top 10 MTF Trading Apps

    Key Factors to Consider Before Using Stock Margin

    Some of the key factors to consider before using stock margin are given below:

    • Your Risk Tolerance : There is an opportunity to earn money in margin trading, but the loss can also be equally big. If you cannot bear the market fall or sudden loss, then margin is not for you.
    • Trading Experience Level : If you are a new trader, then taking margin without complete information can be dangerous. Using margin in the beginning without understanding the risk can cause huge losses.
    • Brokerage Policies : The funding policy of every broker is different. Some brokers offer MTF (Margin Trading Facility) while some give margin only on MIS orders. SEBI sets minimum margin norms, but brokers may impose higher margins or lower leverage
    • Interest Rates & Charges : The margin amount attracts interest. Some brokers like Pocketful offer margin at a minimum interest of just 5.99%, while others can go as high as 12-18%. These charges can reduce your profits.
    • Stock Volatility : If you are trading in very volatile stocks, they are more likely to get margin calls. Less stable stocks have higher margin risk.

    Margin Trading Facility (MTF) is a regulated service in the Indian stock market that is run under strict rules of SEBI. Its purpose is to ensure that investors are protected and brokers do not take unnecessary risks. SEBI has issued clear guidelines for all aspects related to MTF – such as which stocks are eligible for MTF, how much margin has to be paid, and to what extent the broker can provide funding. It is mandatory for all registered brokers to follow these rules.

    Margin Calculation : Margin is determined according to two types of stocks:

    • F&O stocks have relatively less margin due to low risk.
    • On the other hand, non-F&O or low-liquidity stocks require more margin.

    The broker uses variable margins such as VaR (Value at Risk) and ELM (Extreme Loss Margin) while calculating the margin.

    Collateral and Pledge Process : When you buy shares through MTF, those shares are pledged and pledged with the broker. Now this process has become automatic in almost all brokers, meaning the investor does not need to give any pledge approval manually.

    Margin Call and Risk Control : If the value of your portfolio falls, the broker alerts you about margin shortfall. If the value goes below the set limit, the broker can sell your shares — but before that you are given an opportunity to deposit additional margin.

    Conclusion

    If you want to take much larger trading positions with less capital, then Margin Trading Facility (MTF) can be a good option. But as beneficial as this facility seems, it also needs to be used wisely. Every broker’s terms and interest rates related to this facility are different, so it is important to compare different brokers before making any decision. With proper risk management, you can get good returns using MTF. It is advised to consult a financial advisor before using MTF.

    S.NO.Check Out These Interesting Posts You Might Enjoy!
    1Margin Pledge: Meaning, Risks, And Benefits
    2Margin Call: – Definition and Formula
    3Top Tips for Successful Margin Trading in India
    4Smart Beta Funds: Characteristics, Factors, Benefits, and Limitations
    5Different Types of Trading in the Stock Market

    Frequently Asked Questions (FAQs)

    1. What is MTF in the stock market?

      MTF means Margin Trading Facility, in which you can buy shares by taking a loan from your broker.

    2. Is MTF safe for beginners?

      MTF can be a little risky for beginners as a well defined trading strategy and proper risk management is key to earn profits.

    3. How much interest is charged in MTF?

      It depends on the broker MTF policies. Pocketful MTF interest rates start from 5.99%, which is lowest among all brokers.

    4. Can I hold MTF stocks for the long term?

      Stocks bought using MTF can be held for a significant amount of time but vary from broker to broker. Moreover, interest charges increase if you hold for more days.

    5. What happens if I don’t deposit additional margin?

      The broker can sell your shares and also charge a penalty.

  • How AI is Transforming Stock Market Predictions in 2025

    How AI is Transforming Stock Market Predictions in 2025

    In recent years, Artificial Intelligence (AI) has brought a revolution in stock market forecasting. Today, investment and trading firms no longer rely solely on charts or news. Instead, they use AI, which can analyze massive amounts of data and provide highly accurate market predictions. Indian exchanges like NSE and BSE have also introduced rules and systems to monitor the use of AI in financial markets. In this blog, we’ll explore how AI is improving stock market forecasting and its impact on traders, investors, and regulators.

    AI Tools: Sharper, Real-Time Predictions

    Today’s AI tools don’t just analyze historical data, but also process real-time market movements, news headlines, social media sentiment, and sectoral trends. Machine learning algorithms learn from all these data points and predict what the stock’s next move might be.

    Whenever there is a major event or sudden change in the market, AI processes that information immediately and updates its prediction – that too in seconds. Especially with the help of sentiment analysis, it is able to understand whether people’s opinion about a company or sector is positive or negative. AI-based tools such as algo trading platforms, quant models, and predictive analytics are now helping investors and professional traders make real-time decisions – that too without human bias.

    Traders Are Getting Faster and Smarter with AI

    The secret of success in the stock market is making the right decisions, that too at the right time. Every second is important for traders. Earlier these decisions were taken based on experience and gut feeling, but now the picture is changing. With the help of AI (Artificial Intelligence), trading has now become more data-driven and faster.

    How AI is changing Trading

    • Real-time data processing : Now traders do not need to understand live market data themselves. AI systems read historical price changes, volume and market news every second and immediately give actionable signals. This makes decision making easier and faster.
    • Identifying Market Sentiment : AI algorithms decode sentiment from social media, news articles, and forums to determine public sentiment on a stock or sector.
    • Volatility Signals : The biggest challenge for short-term traders is predicting volatility correctly. AI-based models predict potential volatility and highlight high-reward zones.
    • Smart Entry/Exit Suggestions : Broker APIs can be used to place stop loss, target levels and time-based exits.
    • Advantages in Scalping and Arbitrage : Ultra-fast AI bots detect price gaps on different exchanges and identify arbitrage opportunities in microseconds. These tools are also helpful in scalping due to its fast paced nature.
    • Personalised Risk Alerts : AI can be used to understand the trader’s past trades and behaviour and sends alerts on which trades may be risky helping to avoid losses.

    Read Also: Stock Market Prediction Using Machine Learning

    How AI makes Long-term Planning Easy for Investors

    AI can be useful in helping investors in the following ways:

    • Smart Portfolio Structuring : Investors no longer have to rely on guesswork as AI suggests how much to invest in equity, debt or other assets – so that the portfolio is diversified and returns are stable.
    • Guidance in SIP and goal-based investing : AI helps optimize SIP amount and duration by keeping in mind your financial goals and market conditions.
    • Timely warnings : If there are signs of a decline in the earning quality or balance sheet of a company, AI alerts can help avoid losses.
    • Timely rebalancing advice : When the market conditions change, AI automatically tells what changes should be made in the portfolio – such as the need to sell some stocks or increase allocation in other sectors.
    • Maintaining discipline in the Volatile Markets : When panic or FOMO spreads in the market, AI-based systems help investors stick to the investment plan.

    Read Also: Best AI-Based Trading Strategies Explained

    How can AI be Used to Detect Suspicious Activities?

    Indian stock exchanges NSE and BSE are now using advanced AI tools instead of traditional methods to monitor trading. This change is a big step towards making the market safer, faster and transparent.

    • Real-time data analysis: Now AI analyzes thousands of transactions every second so that any suspicious activity can be caught immediately.
    • Automatic alert system: If unusual volume or price movement is seen in a trade, AI can immediately alert the regulators.
    • Insider Trading Detection: AI algorithms can be used to analyze historical and live data simultaneously to catch patterns that point to insider trading.
    • Sentiment Analysis: With the help of signals coming from social media and news, exchanges now also understand the sentiment of traders and can detect sudden volatility in advance.
    • Index movements : AI is now helping traders better understand and predict intraday movements of indices like Nifty and Bank Nifty, making it easier to make fast and data-driven decisions.
    • Helps reduce risk : The use of AI in new systems helps prevent trading activities that can harm the market – such as sudden large orders or transactions with incorrect data.

    Read Also: Can AI Predict the Stock Market?

    Recently, SEBI banned a foreign firm named Jane Street because it made unfair profits of ₹4,843 crore by algorithmic trading on expiry-day. Such cases have forced the exchanges to further incorporate AI in the surveillance system. Now both BSE and NSE are trying to catch such manipulations in a timely manner through real-time AI tools, so that the market remains transparent, safe and a level playing field for all investors.

    Some Limitations of AI 

    AI tools and algorithmic models do make trading smarter, but they also come with some limitations. It is important for traders to know these risks to avoid losses.

    • Overfitting of the model : AI models are sometimes so trained on historical data that they are unable to handle future uncertainties. That is, they blindly follow old patterns, while missing out on new market events.
    • Impact of data quality : The accuracy of AI depends entirely on the data it is given. If the data is incorrect, outdated or biased, the model’s prediction may also be wrong.
    • Difficulty identifying market anomalies : AI often understands average scenarios better, but it is difficult to accurately predict sudden geopolitical events, policy shifts or panic-based market movements.
    • Lack of Explanation : Sometimes the decisions of the AI ​​model can be hard for a trader to understand or justify them. This can lead to misunderstanding or overreliance.
    • Importance of human intuition : AI has data, but the trader has experience and instinct. Many times emotional or psychological market reactions are better understood by an experienced trader.

    Read Also: How AI and Machine Learning Are Transforming Trading Strategies?

    Conclusion

    AI and machine learning have changed the direction of trading. Now traders are not limited to just looking at charts, but are able to make smarter and faster decisions with the help of data analysis, automated decisions and real-time updates. But as beneficial as these technologies are, they need to be used wisely. AI is not magic, but a tool when used with the right strategy, experience and thinking, can really prove to be beneficial.

    S.NO.Check Out These Interesting Posts You Might Enjoy!
    1How to Use AI for Smarter Investing in India
    2Scope of AI in Investing: Usage, Benefits, and Challenges
    3What is AI Washing? Definition, Tips, Evolutions & Impact
    4Best Artificial Intelligence (AI) Stocks In India
    5Best Artificial Intelligence (AI) Smallcap Stocks

    Frequently Asked Questions (FAQs)

    1. Can AI predict the stock market with certainty?

      In recent years, AI has been quite successful in making reliable stock market predictions. However, it cannot be guaranteed.

    2. Is AI trading good for small traders?

      AI trading usually requires technical expertise and considerable resources due to which it may not be feasible for small traders.

    3. Do AI tools work for long-term investing?

      Yes, but backtesting and understanding the logic behind investment decisions is necessary.

    4. What is the biggest risk of using AI for trading?

      AI can make wrong decisions based on incorrect data or sudden market news.

    5. Can AI help in reducing emotional trading?

      Absolutely, because AI decisions are based on logic, not emotions.

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