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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.

Parameters	Range Bound Stocks	Trending Stocks
Price Movement	Moves up and down between a defined support and resistance	Moves consistently in an uptrend or downtrend direction
Trend Pattern	There is no clear trend, there is sideways movement	Higher highs and higher lows or lower highs and lower lows are formed
Common Sectors	FMCG, PSU, Utilities	IT, Pharma, Auto
Best Indicators to Use	RSI, Stochastic Oscillator, Bollinger Bands	MACD, Moving Averages, ADX
Trading Strategy	Buy at support and sell at resistance	It is better to follow the trend using breakout or pullback strategy
Risk-Reward Ratio	It is limited but provides more consistent returns	Risk 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.

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Frequently Asked Questions (FAQs)

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.
Are range bound stocks good for trading?
Yes, if you identify support and resistance correctly, then short-term profits can be earned.
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.
How long does a stock stay in range?
A stock can remain in the range from a few days to several weeks.
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.

July 30, 2025

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:

Same Day Square Off: The position taken by the client has to be closed on the same day.
Auto Square Off: The position of the client can automatically be squared off before the end of the trading session of a particular day.
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:

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.
The broker provides leverage: The broker provides leverage (for example, 5x to 20x) according to the stock’s volatility and liquidity.
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.
Monitoring the Trade: Throughout the trading day, the trader watches price movements to book profits or limit losses.
Squaring Off Position: The trader must manually square off the position before the market closes; otherwise, the broker will execute it automatically.

Read Also: Lowest mtf interest rate broker

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:

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.
Liquidity: Intraday trades usually involve highly liquid stocks or indices, which ensure quick entry and exit without significant price fluctuations.
Short-Term Profit: Through intraday margin trading, traders can profit from short-term market trends and volatility without holding positions overnight.
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.

Risk of Using Intraday Margin Trading

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

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.
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.
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.
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:

Stop Loss: In case the stock moves against your position, always set a stop-loss to minimise your losses.
Tracking: It is necessary to continuously monitor positions and market trends when doing intraday trading.
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.

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.

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5	How to Use Pivot Points in Intraday Trading?
6	Bank NIFTY Intraday Options Trading: Steps, Strategies & Tips
7	Value Investing Vs Intraday Trading: Which Is More Profitable?

Frequently Asked Questions (FAQs)

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.
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.
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.
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.
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.

July 30, 2025

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:

Business Profitability: Operating profit margin reflects the efficiency of a company in generating profit from its core business operations.
Comparative Analysis: The operating profit margin is generally used to compare the profit of the company with its competitors.
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:

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.
Profitability: A higher operating margin will increase the net profitability of the company.
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.
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:

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.
Labour Cost: If the labour cost is high, the operating profit will be less.
Availability of Resources: If the resources are not available readily, then it can lead to an increase in production costs.
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.

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5	Lowest MTF Interest Rate Brokers in India

Frequently Asked Questions (FAQs)

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

July 30, 2025

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 Category	Subscription (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 Quota	1.57x
Total Subscriptions	2.17x

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 Proceeds	Amount (₹ Cr)
Prepayment and/or repayment of borrowings taken by the Company	375.00
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.

Date	GMP (₹)	Est. Listing Price (₹)	Gain (%)
29 July 2025 (DAY-1)	₹273	₹948	40.44%.

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

Particulars	Details
IPO Opening Date	July 29, 2025
IPO Closing Date	July 31, 2025
Issue Price Band	₹640 to ₹675 per share
Total Issue Size	1,92,59,258 shares(aggregating up to ₹1,300.00 Cr)
Listing Platform	BSE, NSE
Registrar	MUFG Intime India Private Limited
Aditya Infotech IPO DRHP	Click Here
Aditya Infotech IPO RHP	Click Here

Important Dates for Aditya Infotech IPO Allotment

Event	Date
Tentative Allotment	August 1, 2025
Refunds Initiation	August 4, 2025
Credit of Shares to Demat	Aug 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)

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.
What is the price band of Aditya Infotech IPO?
Its price band is fixed from ₹640 to ₹675 per share.
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.
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.
What is the expected listing date of Aditya Infotech?
This IPO is expected to be listed on BSE and NSE on August 5, 2025.

July 29, 2025

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 Category	Subscription (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 Quota	0.41x
Total Subscriptions	0.37x

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 Proceeds	Amount (₹ 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%.

Date	GMP (₹)	Est. Listing Price (₹)	Gain (%)
29 July 2025 (DAY-1)	₹7	₹165	4.43%.

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

Particulars	Details
IPO Opening Date	July 29, 2025
IPO Closing Date	July 31, 2025
Issue Price Band	₹150 to ₹158 per share
Total Issue Size	₹254.26 Cr (1.61 Cr shares)
Listing Platform	NSE, BSE
Registrar	MUFG Intime India Private Limited
Laxmi India Finance IPO DRHP	Click Here
Laxmi India Finance IPO RHP	Click Here

Important Dates for Laxmi India Finance IPO Allotment

Event	Date
Tentative Allotment	August 1, 2025
Refunds Initiation	August 4, 2025
Credit of Shares to Demat	August 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)

What is the IPO date of Laxmi India Finance?
This IPO will open on July 29, 2025 and close on July 31, 2025.
What is the price band for Laxmi India Finance IPO?
The price band has been fixed from ₹150 to ₹158 per share.
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.
What is today’s GMP of Laxmi India Finance IPO?
Today, on July 28, 2025, the GMP is ₹7.
On which exchanges will the IPO list?
The listing will take place on both NSE and BSE.

July 29, 2025

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.

Stock Margin vs Cash Trading

Features	Stock Margin Trading	Cash Trading
Investment Amount Required	Lower as broker provides additional funding	Shares can only be purchased according to the amount of money you have in your trading account
Risk	High risk	Low risk
Returns	Higher as profits increase quickly, but with increased risk	Stable returns
Interest	The broker charges interest on the borrowed amount	No interest has to be paid
Delivery option	Some brokers allow delivery, but interest applies	Upon making full payment, shares are transferred to your demat account
Margin Call Risk	If the price goes down the broker may ask for extra funds	There are no margin calls
Holding Period	Depends 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 traders	For 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.

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.

Use our Margin Trading Facility Calculator

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.

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3	Top Tips for Successful Margin Trading in India
4	Smart Beta Funds: Characteristics, Factors, Benefits, and Limitations
5	Different Types of Trading in the Stock Market

Frequently Asked Questions (FAQs)

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.
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.
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.
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.
What happens if I don’t deposit additional margin?
The broker can sell your shares and also charge a penalty.

July 29, 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.

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.

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.

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.

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Frequently Asked Questions (FAQs)

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.
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.
Do AI tools work for long-term investing?
Yes, but backtesting and understanding the logic behind investment decisions is necessary.
What is the biggest risk of using AI for trading?
AI can make wrong decisions based on incorrect data or sudden market news.
Can AI help in reducing emotional trading?
Absolutely, because AI decisions are based on logic, not emotions.

July 29, 2025

What is NASDAQ: How it Works & How to Invest in Companies listed on it?

NASDAQ is one of the world’s largest stock exchanges in the world, where investors from all over the world can invest in companies focused on innovation and growth. Today, many people want to know about NASDAQ and want to know how to invest in NASDAQ listed companies. Investing in NASDAQ listed companies has now become easy even from India through ETFs, mutual funds and digital platforms.

This article explains in detail about NASDAQ, its working and the easiest ways to invest in companies listed on NASDAQ.

What is NASDAQ?

NASDAQ is an electronic stock exchange where the world’s largest and fastest-growing tech companies are listed. Its full name is National Association of Securities Dealers Automated Quotations. It is a platform where market participants can trade in the stock market completely digitally.

The biggest feature of NASDAQ is its fully automated and screen-based trading system, which provides facilities like real-time quotes, transparency and fast execution. Today, more than 3,300 companies are listed on NASDAQ, and its key indices, the NASDAQ Composite and NASDAQ-100 have become major benchmarks for global investors to track US markets.

History of NASDAQ

NASDAQ was started on 8 February 1971 in America. At that time it was the world’s first fully computerized stock exchange, which completely changed the old way of trading. In traditional exchanges where trading took place on the physical floor, NASDAQ started exchanging orders electronically on the screen for the first time.

Initially NASDAQ was only a quotation system – that is, it only showed share prices. But gradually services like transactions and order execution were also added to it, and it became a full-fledged stock exchange. After 1990, NASDAQ started growing rapidly and it became the biggest center of the tech boom. In 1986, companies like Microsoft were listed on NASDAQ. Companies like Tesla, Amazon, Google (Alphabet), Meta and Nvidia have since joined NASDAQ, making it the world’s most tech-savvy and innovation-driven exchange.

Read Also: What is AI Trading?

How NASDAQ Works : Inside the Tech-Driven Exchange

Let’s take a closer look at the key features and inner workings of NASDAQ.

Fully Electronic Trading System : NASDAQ is a stock exchange that is completely electronic from the beginning. Every trade here is done through a high-speed computer system that is, no floor trader, no physical interaction. Due to this system, trade is fast, efficient and less error-prone. NASDAQ’s technology is so advanced that it can handle millions of orders every second.
Advanced Order Matching Engine : Whenever an investor places a buy or sell order, NASDAQ’s automatic system immediately matches it with the best available price. The special thing about this matching engine is that it completes the trade without any delay, which maintains liquidity in the market.
Important Role of Market Makers : Many market makers are active in NASDAQ, who continuously give buy and sell prices for stocks. Their job is to always maintain liquidity in the market so that the investor can trade at any time. Due to their quotes, there is not much fluctuation in the price and the market remains stable.
Real-Time Transparency and Data Access : Every transaction is visible on NASDAQ in real-time. Price changes, volume data and news updates are immediately available to investors, allowing them to make the right decisions at the right time. This transparency makes NASDAQ reliable for global traders.
Market Safety with AI Surveillance : NASDAQ is not only fast, but also safe. Its systems have AI-based surveillance tools that monitor every trading activity. If an unusual or suspicious trade pattern is identified, the system immediately generates alerts, ensuring investor safety.

How Do Companies Get Listed on NASDAQ?

Companies must complete the process and fulfill other requirements given below to get listed on NASDAQ.

Step 1: Meet Financial & Governance Requirements

Companies must meet a number of financial benchmarks to be listed on the NASDAQ. For example, a company must have $11 million in aggregate pre-tax earnings over the past three years or meet strict cash flow, revenue, asset standards, including a market capitalization of $550–850 million. Also, the share price must be at least $4 ($3 is acceptable in some cases), and there must be a minimum of 1.25 million publicly traded shares and 2,200 shareholders.

Step 2: Prepare & Submit Listing Application

The official process is completed through NASDAQ’s Listing Center, where companies must fill out an online application, including audited financial statements, corporate governance documents, SEC filings, and other required details. Once everything is submitted, the NASDAQ team conducts an initial review and sends comment letters for feedback or clarification of documents; this process typically takes 2- 3 weeks.

Step 3: Symbol Reservation & Application Review

Once the application is accepted, companies must reserve their trading symbol. The NASDAQ team assigns companies an analyst who monitors the application process and recommends necessary corrections.

Step 4: Get Approved & Go Public

Finally, after meeting all compliance requirements and submitting fees (entry fee $50–295k and annual listing fee $55–150k or more), NASDAQ gives listing approval. After this, the company’s stock starts trading publicly on NASDAQ.

Ongoing: Compliance & Maintenance

NASDAQ expects listed companies to comply with the regulatory and governance standards. Failure to comply with the specified rules and regulations can cause the company to get delisted.

How to Invest in Companies listed on NASDAQ from India?

You can invest in stocks listed on NASDAQ from India by following the process mentioned below:

Investing through International Mutual Funds : Indian investors can use international mutual funds to get exposure to NASDAQ-listed companies. These funds directly track benchmarks like U.S. equity indices like NASDAQ-100. You can invest via SIP or lumpsum amount.
Through U.S. Brokerage Platforms : Several global investing platforms like Vested, INDmoney, etc. allow you to invest directly in the U.S. stocks. Through these applications, you can even buy shares of NASDAQ-listed companies like Apple, Tesla, Amazon in fractions.
Through Global Access through Indian Brokers : Some Indian brokers like ICICI Direct, HDFC Securities, and Kotak Securities provide global investing services. With their help, you can invest in NASDAQ stocks from your existing Demat account though there are some documentation and compliance steps.
Through ETFs (Exchange Traded Funds) : ETFs tracking the NASDAQ-100, such as Motilal Oswal NASDAQ 100 ETF listed in India, are a smart way to in NASDAQ listed companies. You can buy them like regular shares.

Why Should You Consider Investing in NASDAQ listed companies?

You can consider investing in NASDAQ listed companies due to the following reasons:

Innovation-focused Index : The NASDAQ offers investing in companies working on future technologies and solutions. Most of the companies listed here focus on research, new products and cutting-edge technology, making it a unique choice for long-term investors.
Global exposure without going abroad : Investing in NASDAQ companies gives you direct exposure to US markets. Investing in these companies gives you ownership of dollar-denominated assets, which also acts as a currency hedge in case the value of the rupee falls.
Diversification : Investing in a diversified index offered by NASDAQ not only gives you exposure to multiple sectors such as global pharma, fintech, semiconductors, and cloud services but also provides geographical diversification by allowing you to participate in the growth of leading U.S. and international companies, thereby reducing overall portfolio risk.
Keeping pace with a rapidly changing world : The NASDAQ prioritizes companies that are leading change, not just reacting to it. If you want your investments to not just remain stable, but to actively grow, it may be worth focusing on agile and future-ready companies listed on NASDAQ.

Read Also: Best Trading Apps in India

Conclusion

Investing in NASDAQ-listed companies means being a part of the growth story of the top companies in the world. But before that, it is important that you understand the basics of the stock market- like the movement of the US market, the fluctuations of the dollar and the long-term growth perspective of the US economy. It is recommended you start with a small capital and invest in NASDAQ listed companies after thorough analysis. It is advised to consult a financial advisor before investing.

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Frequently Asked Questions (FAQs)

What is NASDAQ-100?
NASDAQ-100 features 100 largest non-financial companies listed on the NASDAQ stock exchange.
Can Indian investors invest in NASDAQ listed companies?
Yes, one can invest through mutual funds, ETFs and through brokers that allow investing in US markets.
What are the benefits of investing in NASDAQ companies?
One gets exposure to high-growth companies and the portfolio becomes more diversified.
Is foreign currency fluctuations a concern while investing in NASDAQ listed companies?
Yes, the price fluctuations in the USD/INR exchange rate can directly impact returns.
Is investing in NASDAQ companies suitable for long-term investors?
Yes, it is ideal for long-term investors looking to invest in companies focused on innovation and growth. However, it is advised to consult a financial advisor before investing.

July 29, 2025

Top 10 Option Trading Books in India [2025]

Options trading can be highly rewarding, but it requires a solid understanding of the concepts to trade options profitably. Videos or tips alone help to some extent, but option trading books are the best when it comes to in-depth learning. These books explain everything from option trading basics, strategy and risk management.

If you are looking for the best books on options trading in India, then this article is for you. Here, you’ll find a curated list of the top and most up-to-date books for 2025 to help you master the art of options trading.

Top 10 Best Option Trading Books

Name	Author	Main Focus	Best For
Options as a Strategic Investment	Lawrence G. McMillan	60+ options strategies, hedging techniques, in-depth analysis	Intermediate to advanced traders
Option Volatility and Pricing	Sheldon Natenberg	Volatility, Greeks, pricing models, premium behavior	Advanced-level traders
The Bible of Options Strategies	Guy Cohen	Strategy guide in easy language with charts and visuals	Beginners and intermediate-level traders
Trading Options Greeks	Dan Passarelli	Deep understanding of Delta, Gamma, Theta, Vega (Greeks)	Traders learning adjustments and risk
Options Trading: The Hidden Reality	Charles Cottle	Risk management and complex position setups	Serious and professional option traders
The Options Playbook	Brian Overby	Categorized strategies with real examples and simplified terms	New traders and part-time investors
Options Made Easy	Guy Cohen	Basics, risk control, and simple option strategies	Complete beginners in options trading
Mastering the Trade	John F. Carter	Real-world setups combining options and futures	Technical and multi-instrument traders
Trading in the Zone	Mark Douglas	Trading psychology, discipline, and mindset	For traders focusing on developing trading psychology
NISM X Taxmann’s Equity Derivatives	NISM	SEBI regulations, framework of options market in India	Indian traders and NISM exam aspirants

Brief Overview of the 10 Best Options Trading Books

A summary of the 10 best options trading books has been given below:

1. Options as a Strategic Investment

This book is considered a classic in the world of options trading. It explains more than 60 options strategies in detail, such as covered calls, spreads, straddles and combinations. McMillan has presented the trading logics, risk-reward ratio and practical application of each strategy in a very simple language. If you are at an intermediate or advanced level in the options market, then this book can help you master things like multi-leg strategies, volatility shifts and hedge planning. Its concepts are fully applicable for traders trading options in India as well, just a little adjustment is required to the context. This is a must-read for a serious options trader.

2. Option Volatility and Pricing

This book is considered to be a definitive guide to understanding volatility and pricing in the options market. Natenberg has explained implied volatility, historical volatility and option Greeks (Delta, Gamma, Vega, Theta) in simple language in this book. This is especially important for traders who trade near expiry or scalp weekly options. In this, theoretical models have been explained by linking them to real market situations, which makes the concepts even more practical. This book is very helpful to understand the rapidly changing premiums and declining values over time in the Indian options market. This book provides a strong foundation for advanced learning.

3. The Bible of Options Strategies

If you want to understand option strategies in a visual and step-by-step way, then this book is perfect for you. It explains more than 60 option strategies with charts, graphs and tables, so that even beginners can learn quickly. Guy Cohen has given different strategies for bullish, bearish, neutral and volatile market conditions. Indian traders get practical clarity in this as to when and how to apply which strategy. This book is very useful for those who want to understand the theory as well as real-time application.

4. Trading Options Greeks

This book focuses completely on option Greeks (Delta, Gamma, Theta, Vega). Dan Passarelli has explained how these Greeks affect the risk and reward of an option position. Especially for Indian traders, who struggle with Theta decay near expiry, this book can become a practical toolkit for them. It also includes real-world trade adjustments and risk management strategies. For traders who want to move beyond directional betting and learn data-driven trading. It is an excellent guide to understanding option adjustments and portfolio hedging.

5. Options Trading: The Hidden Reality

This book opens up the layers of options trading that a beginner usually misses. Charles Cottle has explained in depth complex concepts like option structure, synthetic positions and dynamic hedging. This book is not theoretical but based on a real-time mindset and execution. Although its language and depth is a bit advanced, it is a must-read for serious traders who are looking for consistent profits. It helps in looking at the mechanics of options trading from a scientific perspective, especially when adjusting or hedging positions.

6. The Options Playbook

This book presents options trading as a “playbook”, where each strategy is explained based on the mood of the market you are in bullish, bearish or neutral. Along with real-life examples, entry, exit and break-even points are also explained very precisely. Brian Overby has written it especially for beginners and part-time traders who want to take smart decisions by understanding the strategy. Indian traders will get the clarity in it which is often lacking in YouTube content.

7. Options Made Easy

As the name suggests, this book is written to make options trading easy. Guy Cohen explains the basic terminologies, strategies, and risk control of options in a very simple language. This book is ideal for those who are just entering the options market and want to get clear information without complex calculations. The visual charts and case examples included in it are very helpful for beginner Indian traders to understand. This book is highly recommended for a solid foundation.

8. Mastering the Trade

This book focuses on options as well as futures and technical analysis. John Carter also discusses his real trades, setups, and psychological preparation. Timing and entry-exit planning are very important in options trading, and Carter teaches this very well. If you want to learn options as a complete system, not just a strategy – then this book can prove to be very beneficial for you. Indian index traders will find it helpful to understand the multi-timeframe approach.

9. Trading in the Zone

This book is considered to be the best to understand the psychological strength of options or any trading form. Mark Douglas has explained in it that successful trading depends not only on strategy but also on mindset. Fear, doubt, overconfidence and how all these affect our decisions, has been explained in a very accurate and relatable manner. Indian option traders who repeatedly face small losses or missed entries, this book can teach self-analysis and emotional control. It is a master guide of mental discipline.

10. NISM X Taxmann’s Equity Derivatives

This book is important to understand the structure, rules, and regulations of the Indian derivatives market. In this book published by NISM, both futures and options have been explained under the framework of SEBI. If you want to consider option trading as a profession and not just a hobby, then this book becomes a must. Through this, you can get a complete understanding of things like contracts, lot sizes, expiry rules, and risk disclosures in the Indian market. It is also a recommended book for those preparing for NISM certification.

How to Choose the Right Option Trading Book?

Every trader has different needs and learning stages so choosing the right option trading book is just as important as developing a strong trading strategy. Here are 5 important things to consider before you read any book:

If you are new to trading, choose a book that explains basic concepts like call, put, strike price and expiry in simple language. Experienced traders will find books focused on advanced strategies, volatility analysis and risk management more useful.
Some books are based on options strategies, some on psychology or decision-making, and some are purely on theory. You should choose content according to your needs — whether it is income generation or mindset building.
Most books are written keeping in mind the US market, which has American-style options. India uses European-style options that settle on expiry. So choose books whose concepts are globally relevant.
A great option trading book not only teaches concepts but also teaches practical application through real-world examples, charts and trade setups.
Some books are written in technical terms and complex language. So choose a book that you can easily understand.

Conclusion

Choosing the right book to learn option trading can create a strong foundation. Whether you are a beginner or an experienced trader, a good book not only teaches strategies but also explains important aspects like discipline, mindset and risk control. All the best option trading books mentioned above provide practical knowledge as well as real market understanding. Every trader should choose a book according to his learning level, so that knowledge can be converted into action. Right information, decision taken at the right time this is the hallmark of a successful options trader.

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Frequently Asked Questions (FAQs)

Which is the best book for option trading beginners?
Options Made Easy is a great book for beginners as it explains basic concepts in simple language.
Are there any Indian authors who have written good options trading books?
“How to Make Money Trading Derivatives” by Ashwani Gujral and “Mastering Options Trading in the Indian Stock Market” by Nagaraj Balasubramaniam offers comprehensive, India-focused strategies on charting, risk management, psychology, hedging and advanced options techniques.
Do these books cover Indian stock market examples?
Some books do, but most of the concepts are globally applicable to the Indian market as well.
Can I learn option strategies just by reading books?
Books provide a foundation, but practice and market experience are also important.
Are these option trading books useful for intraday traders?
Yes, many books provide short-term strategies and risk management tips that are useful in intraday trading.

July 28, 2025

Top 10 Best Traders in India – Learn from the Legends

The stock market is a place of both remarkable success stories and cautionary tales. While some traders have earned massive profits, others have faced significant losses. The difference lies in their strategies, skills, and understanding of the market.

But who are the best traders in India whom you should look up to? Well, if you are a new trader, looking for some inspiration, you have landed at the right place. Find the list of the top 10 traders in India here and know all the details about them you need.

Top 10 Traders in India

Who is the best trader in India? Well, if you are also wondering this,then it’s important to understand that the best trader isn’t just someone who earns the most. It’s someone who trades consistently, manages risk wisely, and adjusts his strategy with market trends.

The title of the best trader in India could belong to anyone who has mastered these principles. However, most of the names mentioned below have been traders in the past and now shifted their focus to investing and other business ventures. So, here is the list of the top traders in India:

Name	NetWorth (in ₹ Crores)
Radhakishan Damani	1,82,725
Rakesh Jhunjhunwala	62,799
Porinju Veliyath	247.8
Raamdeo Agrawal	15,939
Dolly Khanna	389
Ashish Kacholia	2,700
Vijay Kedia	1,224
Nemish Shah	3,149
Mukul Agrawal	7,742
Nikhil Kamath	26,024

(Data as of July 2025)

So, now that you know the list, let us explore the details of these traders here.

1. Radhakishan Damani

Radhakishan Damani, famously known as the “Retail King” of India was once regarded as the No. 1 trader in India. He is the founder and chairman of DMart.

After completing his education, he started trading. It was his skills in trading the financial markets during the 1990s that made people start to recognise him. Using his trading skills and market knowledge, he earned massive profits when the markets fell after the Harshad Mehta scam.

He is known for his visionary and disciplined business approach. This is one of the reasons that helped him to make DMart the biggest retail chain in India. Today, it has 300+ stores.

2. Rakesh Jhunjhunwala

Undoubtedly, he is one of the best traders in India and is often called the “Big Bull of India.” It is his skills and knowledge which has led people to compare him with Warren Buffett.

Around 1985, he started investing in stocks. He started his journey with as little as ₹5,000. He was also one of the traders that benefitted from creating short positions during the Harshad Mehta scam. Soon after, he became an investor and built a massive investment portfolio over the decades. He invests in fundamentally strong companies with good management.

This long-term holding strategy offered him great returns. Besides investing, he co-founded Akasa Air and served on several company boards. He had a sharp market insight and was a legendary figure in Indian stock markets.

3. Porinju Veliyath

Porinju Veliyath built his career from humble beginnings in Kerala, starting as a floor trader before founding Equity Intelligence in 2009. He specializes in contrarian bets, identifying undervalued small-cap companies overlooked by the market and holding them until their true worth is realized by market participants. Notable early picks include Balrampur Chini and HEG, which delivered multibagger returns. His bold, research-driven style often at odds with prevailing trends has earned both criticism and acclaim, cementing his reputation as one of India’s most fearless and successful traders.

4. Raamdeo Agrawal

He is an Indian businessman and co-founder of Motilal Oswal Group. To complete his CA studies, he moved to Mumbai. Post completing, he started his career as a sub-broker in 1987.

He is the one who coined the QGLP rule, i.e., Quality, Growth, Longevity, and Price. He is known for his long-term commitment to quality stocks. Most of his holdings are multi-decade, which has allowed him to earn above benchmarks.

His idea of investment is based on deep research and long-term planning. He is one of the top 10 traders in India. He has helped to build a strong image of a thoughtful and consistent investor in the market.

5. Dolly Khanna

Dolly Khanna prefers anonymity, yet her stock selections speak volumes. With a focus on emerging small- and mid-caps, she has unearthed gems such as Rain Industries, Nocil and Tanla Platforms. Her contrarian entry points, typically before a stock hits mainstream radar, have generated compounded returns far above benchmarks. Despite minimal media presence, her disciplined, fundamentally driven approach and ability to spot rapid-growth businesses have made her one of India’s most respected and successful traders.

6. Ashish Kacholia

With a unique strategy, Ashish Kacholia is one of the best traders in India today. He invested in the mid- and small-cap companies and focused on finding companies with growth potential in the future. He usually searches for companies that are not generally well–known.

He can be considered both a trader and an investor, but in recent years he is more inclined towards long-term investments. It is his research skills and ideas that many people follow his strategies when it comes to investing. He is known for picking stocks with consistent success, which is quite unique.

Before investing, he does a detailed analysis of the company. This offers him a detailed view which is good for a longer run.

7. Vijay Kedia

In the list of successful traders and investors in India, Vijay Kedia is a prominent name. He is known for his unique SMILE strategy that has allowed him to generate huge returns. SMILE stands for Small in size, Medium in experience, Large in aspiration, and Extra-large in market potential.

This is how he started his investing journey. He focuses on evaluating small and mid-cap companies with growth potential. Recently, his focus shifted towards long-term investing. With his inspiring journey and simple approach, he is now a role model for many traders.

8. Nemish Shah

Nemish Shah is a respected Indian investor and trader. He is known as the co-founder of ENAM Holdings. It is one of the well-known equity research firms in India. The firm helps with investment banking and portfolio management.

He focuses on a research-driven investment style. The idea is to invest in companies with a strong business plan and future. Nemish focuses on every market movement quite precisely before making a decision. He is also an avid reader and observer of everyday market movements.

9. Mukul Agrawal

One of the best traders in India, he is known as the founder and chairman of Param Capital Group. He started his journey in the late 1990s. He worked in Mumbai where he gained the skills. Eventually, he started trading and became a prominent name in the industry.

He follows an aggressive investment strategy and focuses on small and mid-cap stocks. He is one of the very few traders who have spotted various multibagger opportunities. He believes in taking calculated risks, which makes him one of the very few successful traders in India.

10. Nikhil Kamath

Nikhil Kamath’s trading journey began at 17, working in a Bangalore call centre while quietly investing his modest salary in stocks. By 2006, he and his brother Nithin had obtained sub-broker licenses and founded Kamath & Associates, all while trading on the side and honing his skills in risk management, i.e., cutting losses quickly and sizing positions prudently. In 2010, he co-founded Zerodha and revolutionized markets and subsequently became one of the youngest billionaires in India.

Conclusion

Trading is not an easy task as it requires deep knowledge, analysis, and patience. So, while there are many good traders in India, only a few can be categorized as the best traders in India. These traders have constantly upskilled themselves, adjusted to market trends and continuously analysed the markets for a better understanding.

So, whether you are a beginner or an expert trader, you need to focus on adjusting your strategies according to the recent market conditions. Working on your skills can help you earn significant profits. And for the right start to the trading journey, signup on Pocketful today.

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Frequently Asked Questions (FAQs)

Who is the No. 1 trader in India currently?
It’s difficult to name a single No. 1 trader in India, as many of the well-known traders discussed above were active traders at some point in their careers but may have since shifted their focus toward investing.
Are all top traders from finance backgrounds?
No, many traders started trading based on their willingness to learn. You can also learn from their experience and gain knowledge over time to become a successful trader.
What can beginners learn from these top traders?
Beginners can learn the importance of discipline, risk management, and continuous learning from these top traders, using their journeys as inspiration to develop their own trading approach.
What makes these traders successful?
These traders succeed because they combine deep market analysis with disciplined risk management, making informed decisions rather than relying on speculation or emotion.
Do all these traders still actively trade?
Only a few of these traders still actively trade, while most have gradually shifted their focus toward long-term investing.

July 28, 2025

Blog

What is Range Bound Market?

How to identify the Range Bound Market?

How is it different from a Trending Market?

Characteristics of a Trading Range

Range Trading Strategies

Range Bound Stocks vs Trending Stocks

Why Do Markets Become Range Bound?

Risks and Limitations of Range Trading

Conclusion

Frequently Asked Questions (FAQs)

What is the meaning of the range bound market?

Are range bound stocks good for trading?

Is range trading suitable for beginners?

How long does a stock stay in range?

What is the biggest risk in range trading?

Meaning of Intraday Margin Trading

Features of Intraday Margin Trading

How Does Intraday Margin Trading Work?

Example of Intraday Margin Trading

Benefits of Using Intraday Margin Trading

Risk of Using Intraday Margin Trading

Precautions to Use Intraday Margin Trading

Conclusion

Frequently Asked Questions (FAQs)

What is the intraday margin?

Is intraday margin available for all stocks?

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

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

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

Meaning of Operating Profit Margin

Features of Operating Profit Margin

Formula of Operating Profit Margin

Example of Operating Profit Margin

Importance of Operating Profit Margin

Factors Affecting Operating Profit Margin

Conclusion

Frequently Asked Questions (FAQs)

What is the formula to calculate operating profit margin?

What is Operating Profit Margin?

What percentage is considered a good operating profit margin?

Can the operating profit margin be negative?

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

Aditya Infotech IPO Day 1 Subscription Status

Objective of the Aditya Infotech IPO

Aditya Infotech IPO GMP – Day 1 Update

Aditya Infotech IPO – Key Details

Important Dates for Aditya Infotech IPO Allotment

Aditya Infotech Overview

Easy Steps to Apply for Aditya Infotech IPO via Pocketful

Frequently Asked Questions (FAQs)

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

What is the price band of Aditya Infotech IPO?

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

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

What is the expected listing date of Aditya Infotech?

Laxmi India Finance IPO Day 1 Subscription Status

Objective of the Laxmi India Finance IPO

Laxmi India Finance IPO GMP – Day 1 Update

Laxmi India Finance IPO – Key Details

Important Dates for Laxmi India Finance IPO Allotment

Laxmi India Finance Overview

Easy Steps to Apply for Laxmi India Finance IPO via Pocketful

Frequently Asked Questions (FAQs)

What is the IPO date of Laxmi India Finance?

What is the price band for Laxmi India Finance IPO?

What is the lot size and minimum investment?

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

On which exchanges will the IPO list?

What is Stock Margin?

Types of Margins in Stock Trading

Stock Margin vs Cash Trading

Pros and Cons of Using Stock Margin

Pros of Stock Margin

Cons of Stock Margin

Key Factors to Consider Before Using Stock Margin

Conclusion

Frequently Asked Questions (FAQs)

What is MTF in the stock market?

Is MTF safe for beginners?