Like cash calls, some of the brokerages do come with ''Margin Funding Picks' based on the exclusive and extensive research for Margin trading products. Note not all scrips are covered under Margin trading. For a layman Margin Trading facility or funding can be understood as a facility wherein investors are allowed to buy shares and scrips even if they are short of funds just by paying a portion of the total transaction value called a margin.
Note this margin can be either in cash or as collateral against securities pledged with the broker.
Say for instance: 100 shares of RIL (worth Rs. 2.5 lakh)- Cash payment
With MTF, if we deploy just 30% margin, then on the remaining Rs. 1.75 lakh there shall be interest on daily basis or it shall be accumulated in your broker account. The interest varies based on the brokerage plan you choose with your broker. In case of ICICI Direct, the interest charged can be between 8.9-18%p.a.
Here the benefit is that even if you pay interest on the money borrowed, if the stock is in uptrend you end up making smart gains over and above the interest payable by tapping this opportunity of leveraging.
So, herein we discuss top ' Margin Funding Picks' for December 2021 by ICICI Direct. Note the suggested target is for 3 months time-frame.
For a 3-months time frame, target for the conglomerate entity has been provided as Rs. 2580 with buying range suggested to be Rs. 2350-2390. Support for the stock is seen at Rs. 2240. YTD returns from the stock have been around 24%.
RIL is the leading private sector entity with businesses across energy as well as materials value chain. The company's various segments include exploration and production, petroleum refining and marketing, textile, retail, telecom and petrochemicals.
For the leading IT company, the company has set out a target of Rs, 3760, while the 'Buy' is recommended in a price range of Rs. 3450-3490. Support for the stock is seen at Rs. 3270. YTD return on the stock is 27 percent.
Part of the Tata Group, TCS is a global IT solutions provider. The company's offering encompass a portfolio of IT-enabled and IT services provided by its one of its kind Global Network Delivery Model..The company serves primarily BFSI, telecom and retail and distribution industries.
For the Aditya Birla group cement company, the brokerage has suggested to buy the scrip in the price range of Rs. 7620-7685 for a target price of Rs.8270. Support for the stock is seen at Rs. 7260. Stock on a YTD basis has given 41 percent return.
The company manufactures and markets ordinary portland cement, slag cement, Portland Pozzalana Cement. Also, it is into manufacturing ready mix concrete (RMC). Besides, it is also the leading exporter of cement clinker.
The target seen to hit for the stock in 3 months is Rs. 240 and the price range suggested to buy the PSB is Rs. 214-219. Support for the stock is seen at Rs. 202. YTD return on the stock is 72%.
The Public sector bank offers services such as personal banking, corporate banking, NRI Banking. Further it offers various services to the SME and priority sector. The PSB has lately raised Rs. 1500 crore via Basel III compliant Bonds.
|Stock||Buying Range||Support||Current market price||Target price|
|RIL||Rs. 2350 - 2390||Rs. 2240||Rs. 2459||Rs. 2580|
|TCS||Rs. 3450 - 3490||Rs. 3270||Rs. 3637||Rs, 3760|
|Ultratech Cement||Rs. 7620 - 7685||Rs. 7260||Rs. 7440.45||Rs.8270|
|Canara Bank||Rs. 214 - 219||Rs. 202.||Rs. 222.15||Rs. 240|
The stocks listed as MTF calls have been picked from the brokerage report of ICICI Direct. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution. Greynium Information Technologies, the author, and the brokerage house are not liable for any losses caused as a result of decisions based on the article.