Finding the best stocks for intraday trading requires a combination of technical analysis, fundamental analysis, and market knowledge. Here are some steps to help you identify potential stocks for intraday trading:
- Look for stocks with high liquidity: Stocks that are highly liquid have high trading volumes, making it easier to buy and sell them quickly. Look for stocks with high average daily trading volumes.
- Analyze the market: Keep an eye on market trends and news that may affect the stocks you are interested in. Look for stocks that are likely to be volatile, such as those that have recently made significant price movements.
- Use technical analysis: Use technical indicators such as moving averages, relative strength index (RSI), and Bollinger Bands to identify potential entry and exit points. These indicators can help you identify trends, momentum, and support and resistance levels.
- Look for stocks with strong fundamentals: Analyze the financials and other fundamental data of the companies behind the stocks you are interested in. Look for stocks with strong earnings growth, a solid balance sheet, and a competitive advantage in their industry.
- Monitor the news: Keep an eye on news and events related to the companies and industries behind the stocks you are interested in. News can have a significant impact on stock prices and volatility.
- Practice with a demo account: Before trading with real money, consider practicing with a demo account. This can help you refine your trading strategy and test your skills without risking your capital.
It is important to note that intraday trading can be risky and requires careful analysis and risk management. It is important to do your research and consult with a financial advisor before making any investment decisions.
best websites to research for stock in India
There are several websites that can be used to research the Best Stocks for Intraday Trading in India 2023. Here are some popular ones:
- Moneycontrol: This is one of the most popular financial websites in India. It provides a wealth of information on stocks, mutual funds, and other financial products. It also offers live market updates, news, and analysis.
- Economic Times Markets: This website provides real-time stock prices, news, and analysis. It also offers tools for technical analysis and charting.
- NSE India: This is the official website of the National Stock Exchange of India. It provides information on stocks, derivatives, and other financial products. It also offers live market updates and news.
- BSE India: This is the official website of the Bombay Stock Exchange. It provides information on stocks, mutual funds, and other financial products. It also offers live market updates and news.
- Investing.com: This global financial website provides real-time stock prices, news, and analysis. It also offers tools for technical analysis and charting.
- Screener.in: This website provides detailed financial information on Indian stocks, including balance sheets, income statements, and cash flow statements. It also offers screening tools for finding stocks based on various criteria.
It is important to note that these websites should be used as a starting point for research, and investors should consult with a financial advisor before making any investment decisions.
Is it a good idea to Trading on News-Based Stocks?
Trading on news-based stocks can be both profitable and risky, depending on several factors. Here are some pros and cons to consider:
- News-based trading can provide opportunities to capitalize on market movements resulting from major events, such as earnings reports, regulatory changes, or macroeconomic news.
- News-based trading can allow investors to identify trends or shifts in market sentiment that may not be immediately reflected in stock prices.
- News-based trading can be a useful tool for short-term traders who are looking to capitalize on market volatility.
- News-based trading can be risky, as market reactions to news can be unpredictable and volatile.
- News-based trading can lead to overreaction or underreaction to news, which can result in missed opportunities or losses.
- News-based trading requires constant monitoring of news sources, which can be time-consuming and stressful.
In conclusion, news-based trading can be a profitable strategy if done carefully and with proper research. Investors should carefully analyze the potential impact of news events on stock prices and should have a sound understanding of technical and fundamental analysis before implementing such a strategy. Additionally, it is important to maintain discipline and not let emotions drive decision-making when trading on news-based stocks.
best indicators for intraday trading
There are many different indicators that traders use for intraday trading, and the best indicator can depend on the trader’s personal preferences, trading style, and the specific market or security being traded. However, here are a few popular indicators that many intraday traders use:
- Moving Averages: Moving averages are a popular technical analysis tool that can help traders identify the trend direction and potential support and resistance levels. The 20-day moving average and the 50-day moving average are commonly used in intraday trading.
- Relative Strength Index (RSI): The RSI is a momentum oscillator that measures the speed and change of price movements. Traders often use the RSI to identify overbought and oversold conditions and potential trend reversals.
- Bollinger Bands: Bollinger Bands are a volatility indicator that uses standard deviation to create an upper and lower band around a moving average. Traders use Bollinger Bands to identify potential breakout and reversal points.
- Volume: Volume can be a useful indicator in intraday trading because it can provide insight into the strength of market movements. High volume can indicate strong buying or selling pressure, while low volume can indicate a lack of interest in the security.
It’s important to note that no single indicator can guarantee profitable trades, and traders often use a combination of indicators and other analysis tools to make informed trading decisions.
which Indian broker is best for intraday trading?
Choosing the best broker for intraday trading in India depends on several factors, such as brokerage fees, trading platform, customer service, and reliability. Here are some popular brokers for intraday trading in India:
- Zerodha: Zerodha is one of the most popular discount brokers in India. It offers low brokerage fees, a user-friendly trading platform, and a range of research and analysis tools.
- Upstox: Upstox is another popular discount broker in India. It offers low brokerage fees, a fast trading platform, and a range of research and analysis tools.
- 5Paisa: 5Paisa is a discount broker that offers low brokerage fees, a mobile trading app, and a range of research and analysis tools.
- ICICI Direct: ICICI Direct is a full-service broker that offers a range of trading services, including intraday trading. It has a user-friendly trading platform and offers research and analysis tools.
- HDFC Securities: HDFC Securities is another full-service broker that offers a range of trading services, including intraday trading. It has a user-friendly trading platform and offers research and analysis tools.
It is important to note that each broker has its own strengths and weaknesses, and investors should choose a broker that meets their specific needs and requirements. Before choosing a broker for intraday trading, investors should compare brokerage fees, trading platforms, and other features, and consult with a financial advisor if needed.
I personally use Zerodha for both trading & investment purposes. If you like then you can also open an account in Zerodha.
You can also check out our article “India’s Top 10 Stock Brokers” and choose a broker.