Sharekhan Blog

How to Select Stocks for Intraday Trading?

  • Mar 9, 2024

Due to its potential for rapid returns, it is a popular trading method among investors. It does, however, carry a unique set of risks and necessitates close observation of market developments and stock selection.

Especially for beginners, choosing the best stocks for intraday trading can be a difficult undertaking. So, keeping this in mind, let's explore stock tips for tomorrow's intraday trading.

Best Rules to Select Intraday Trading Stocks

1.    Always Select Liquid Stocks

A day trader's primary concern is a stock's liquidity. Purchasing and selling a liquid stock on the same day is crucial when investing in stocks. This means the knowledge that the stock can be purchased or sold at any time is comforting when there is sufficient liquidity.

However, this aids in seizing any possible profits that may result from significant daily price changes. Because they can be purchased and traded in big quantities without changing the price, high-volume stocks are what you should be looking for.

2.    Analyzing Market Trends

This is another intraday stock tips that is critical to assessing market trends and comprehending how they affect certain stocks in order to choose the finest stocks for day trading. Moving averages, the MACD, and Bollinger Bands are examples of technical analysis strategies that can be used to spot trends and figure out when to enter and leave a trade.

3.    Sector Trends

Several industries can be identified within the industry, including technology, pharmaceuticals, automotive, oil and gas, fast-moving consumer goods, and finance.

However, it's critical for intraday traders to stay up to date on the state of every economic sector. So, you can look for companies to invest in from those sectors if you identify any that have been consolidating for a few months and are about to break out.

Additionally, you can search for peer best stocks to buy for intraday from the same sector that is in the potential breakout area if you find any stocks that have achieved significant gains. Still, you were unable to take advantage of the increase.

4.    Opt for Brokers That Deliver Charting Tools.

Charting software, research, and analytics tools are commonly used by intraday traders when they are trading. Such indicators as the support and resistance levels, as well as the price history of the security, are the key elements in this tool.

But the thing is not all stockbrokers offer the necessary tools for the trading done intraday. That’s why you should open a trading account with a stockbroker who provides quality charting tools and access to market research as a part of the deal. Accelerate your progress by opening a Demat account with the same stockbroker.

5.    Pick hot stocks for intraday trading.

Buying cheap and selling high best stocks for intraday trading tomorrow as soon as you can is known as intraday trading. You can do this with any stock, but it is especially simple with large volumes, cheap trading expenses, and stable price trends.

These equities are typically large, well-known brands that consumers in the US are familiar with. They are mostly commodity enterprises or financial organizations in India. Large caps are not necessary; midcaps and small caps can also be effective.

Those who are impatient should not engage in intraday trading. There's no skipping any of it. But there is a technique to increase your chances of success and simplify your life.

6.    Using News and Events

Events and news are crucial factors to take into account when choosing the best share to buy for intraday trading because they can significantly affect stock prices. Following market announcements and news might assist in identifying possible short-term opportunities or hazards.

7.    Look for transparent companies.

Investing in stocks of companies that provide the market with adequate information about their business operations is often a prudent move. Taking into account all of the facts at your disposal facilitates decision-making. If important information is withheld, you might make a poor decision that costs money.

For intraday trading, only businesses with clear business procedures should be selected. Another thing to think about when selecting stocks for intraday trading is stable management.

The Bottom Line

For intraday trading, choosing stocks necessitates combining technical and fundamental analysis with a grasp of market movements. You may improve your chances of generating good trades by taking into account variables like liquidity, volatility, company fundamentals, news, and events, as well as by utilizing proven techniques like momentum trading, scalping, breakout trading, and swing trading. Moreover, to reduce losses, always maintain a clearly defined trading plan and employ risk management strategies.

Team Sharekhan
by Team Sharekhan

We care that your succeed

Leaving no stone unturned in creating a one-stop shop for the latest from the world of Trading and Investments in our effort to Make the Markets work for YOU!

Recent posts

Reasons Behind Investors Losing Money in Futures & Options

17 May 2024

Sharekhan’s Survey  unveils reasons behind investors losing money in Futures & Options Trading—an issue flagged by SEBI

Read More

India's Top Retail Broker & Analysts Awards

16 May 2024

A BIG thank you to our customers for Sharekhan being recognised as India’s No. 1 Retail Broker & our Research Analysts also winning top ranks.


Read More

What Is Large Cap Fund?

2 May 2024

Large-cap companies are well-established entities with a respectable vintage and reputation.

Read More

Intraday vs Delivery Trading: Which One is Right for you?

30 Apr 2024

Trading platforms in India offer retail investors easy access to equity markets; an oft-asked question is the suitability between utilising delivery-based investing versus higher velocity intraday trading.

Read More

Stock Market Timings in India

30 Apr 2024

India's stock markets play an important role in the growth of its economy and wealth creation for investors. But to actively participate in equity trading avenues, having a sound understanding of exact stock market timings and hours is key for tra

Read More