Best Intraday Stocks for Today in India (2024)

Last Updated on Jul 11, 2024 by Anjali Chourasiya

Intraday trading, the practice of buying and selling stocks within the same trading day, can be a lucrative strategy for experienced traders who are able to navigate the inherent risks and challenges. The key to successful intraday trading lies in identifying the right stocks that have the potential to deliver short-term gains during the trading session.

In this blog, let’s explore the best intraday stocks for today, along with intraday stocks with good fundamentals, factors to consider before investing in them, benefits, risks, and more.

What is Intraday Trading?

Intraday trading refers to the practice of buying and selling stocks within the same trading day. This means that all positions are opened and closed during the market’s operating hours, avoiding any overnight exposure. The primary objective of intraday trading is to profit from short-term price movements that occur throughout the trading session. However, intraday trading also carries significant risks and challenges that traders must be aware of and prepared to manage effectively.

Best Intraday Stocks for Today (NSE)

Note: The information is dated 11th July 2024. We have listed the best stocks for intraday trading from Tickertape’s Stock Screener based on the following parameters:

• Stock Universe – Nifty 500
• Pro screen – Momentum Monsters

Intraday Stocks with Good Fundamentals

Note: The information is dated 11th July 2024. We have listed the best stocks for intraday trading from Tickertape’s Stock Screener based on the following parameters:

• Stock Universe – Nifty 500
• Beta – Set to High – Sorted from Highest to Lowest
• Fundamental Score – Set to High

Beta stocks carry the high risk but also offer higher return potential. Higher the beta, higher are the chances of the price of stocks to fluctuate in a single trading session.

Whereas, fundamental score ranks the stock vs all others in the sector, based on different fundamental criteria.

Note that these stocks are in no order of preference. Please note that these stock selection criteria and the stocks are provided for informational purposes only; it is essential to conduct your own research.

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Key Objectives of Intraday Trading

1. Profit from Short-Term Price Movements
   You can take advantage of small price changes within a single trading session. By buying at a lower price and selling at a higher price within the same day, you aim to make quick profits. The best intraday stocks today are those with significant price volatility and high liquidity.
2. Avoiding Overnight Risks
   By closing all positions before the market closes, you may avoid risks associated with holding stocks overnight, such as after-hours news or events that could adversely affect stock prices. This makes intraday stocks for today particularly appealing to those who want to minimise risk.
3. Leveraging Market Volatility
   Intraday trading thrives on market volatility. You might look for intraday stocks to buy today that exhibit significant price movements during the day, providing opportunities to enter and exit trades profitably.
4. High Liquidity
   Highly liquid stocks can be bought and sold quickly without significantly affecting the stock’s price. High liquidity may ensure efficient trade execution and minimal slippage, making it easier to manage intraday trading stocks today.
5. Utilising Technical Analysis
   You may want to rely heavily on technical analysis tools and charts to make informed trading decisions. Analysing price patterns, volume, and other indicators can help identify potential entry and exit points for your trades. This is crucial for identifying the best intraday stocks to buy today.

Intraday trading requires a deep understanding of market dynamics, quick decision-making skills, and a disciplined approach. Staying updated with market news and trends is crucial, as these can significantly impact intraday stocks within a single trading day.

Factors to Consider for Selecting Intraday Stocks

Selecting the best intraday stocks today involves evaluating various critical factors. You need to pay close attention to liquidity, volatility, market news, and technical indicators. Let’s explore each of these in detail.

Liquidity

When you are considering intraday stocks for today, liquidity may be a crucial factor. High liquidity can ensure that you can enter and exit positions quickly without causing a significant impact on the stock’s price. Stocks with high trading volumes may allow for smoother transactions and tighter bid-ask spreads, which might be essential for maximising your trading efficiency.

Volatility

For intraday traders, selecting stocks with significant price movements might be beneficial. Volatility refers to the degree of variation in a stock’s trading price over a certain period. Stocks that exhibit substantial intraday price fluctuations could provide more opportunities for short-term gains. It is important to select stocks that demonstrate a healthy level of volatility, as less volatile stocks may not offer the same potential for intraday profits.

News and Events

Staying informed about market news and events can be crucial when selecting intraday stocks to buy today. Earnings reports, economic data releases, and geopolitical events can all drive significant price movements. By keeping an eye on the news, you might identify stocks that are likely to experience increased activity and volatility, which could present potential intraday trading opportunities.

Technical Indicators

Technical analysis can be a key tool for intraday traders. Utilising charts and indicators might help you identify potential trading opportunities. Indicators such as moving averages, Relative Strength Index (RSI), and Bollinger Bands can provide insights into trends, momentum, and volatility. By incorporating these tools into your analysis, you can enhance your ability to make informed trading decisions.

Strategies for Intraday Trading

There are several strategies that you might consider when engaging in intraday trading. Each strategy requires a different approach and set of skills. Here are some common intraday trading strategies:

Momentum Trading

Momentum trading involves buying stocks that are showing strong upward or downward trends. The idea is to capitalise on the stock’s continued movement in the same direction. You might look for stocks with high trading volumes and significant price changes as potential candidates for momentum trading.

Scalping

Scalping is a strategy that involves making numerous trades throughout the trading day to profit from small price changes. This approach requires a high level of focus and quick decision-making skills. You may benefit from using technical indicators and charts to identify short-term trading opportunities.

Breakout Trading

Breakout trading focuses on stocks that break through previous support or resistance levels. When a stock’s price moves beyond these levels, it might indicate the start of a new trend. You could use technical analysis to identify potential breakout stocks and set your entry and exit points accordingly.

Range Trading

Range trading involves identifying stocks that trade within a specific price range and buying at the lower end (support) while selling at the higher end (resistance). This strategy relies on the assumption that the stock will continue to trade within this range. You can use technical indicators to determine support and resistance levels and plan your trades accordingly.

Technical Analysis Tools for Intraday Trading

Using technical analysis tools can be essential for intraday trading. These tools might help you make better-informed decisions and identify potential trading opportunities. Here are some common technical analysis tools:

Moving Averages

Moving averages are commonly used to smooth out price data and identify trends. By calculating the average price over a specific period, moving averages can help you determine the direction of the trend. You might use different types of moving averages, such as Simple Moving Averages (SMA) or Exponential Moving Averages (EMA), to analyse stock trends.

Relative Strength Index (RSI)

The Relative Strength Index (RSI) is an indicator that measures the speed and change of price movements. It ranges from 0 to 100 and can help you determine whether a stock is overbought or oversold. RSI values above 70 may indicate overbought conditions, while values below 30 might suggest oversold conditions.

Bollinger Bands

Bollinger Bands consist of a middle band (SMA) and two outer bands that represent standard deviations from the middle band. These bands can help you determine volatility and potential price levels. When the bands widen, it indicates higher volatility; when they narrow, it suggests lower volatility. You can use Bollinger Bands to identify potential buy and sell signals.

Volume Analysis

Volume analysis involves examining the trading volume to understand the strength of a price move. Higher volume during price increases might indicate strong buying interest, while higher volume during price decreases could suggest strong selling pressure. By analysing volume, you can gain insights into the conviction behind a price move.

If you are looking for a reliable platform to utilise these essential technical analysis tools, use the Tickertape Stock Screener. It has over 200 filters including technical indicators, custom universes, custom filters, and more. With detailed insights and analysis of each stock on its individual pages, you can figure out if the stock suits your investment goals or not. Check out here!

Risk Management in Intraday Trading

Effective risk management strategies can be crucial for minimising potential losses in intraday trading. Here are some important risk management techniques:

Setting Stop Losses

Setting stop losses may help you limit potential losses by automatically closing a position when the stock reaches a predetermined price level. This can prevent emotional decision-making and ensure that you stick to your risk management plan.

Position Sizing

Position sizing involves determining the amount of capital you are willing to risk per trade. By allocating a specific percentage of your trading capital to each trade, you can manage your overall risk exposure. This approach can help you avoid significant losses on any single trade.

Diversification

Diversification involves spreading your investments across different stocks to reduce risk. By not putting all your capital into a single stock, you can mitigate the impact of any adverse price movement in one particular stock. This strategy may help you achieve a more balanced and less volatile portfolio.

Staying Informed

Keeping up with market news and events is crucial for making informed trading decisions. By staying informed about economic indicators, company announcements, and geopolitical developments, you can better anticipate market movements and adjust your trading strategy accordingly. For this, you can set custom ‘Alerts’ on Tickertape. Check it out now!

Common Mistakes to Avoid in Intraday Trading

Intraday trading, the practice of buying and selling stocks within the same trading day, carries significant risks that you must be aware of and manage effectively. Here are some common mistakes to avoid when engaging in intraday trading:

Lack of Proper Analysis

Successful intraday trading may require a thorough understanding of market dynamics, technical indicators, and stock performance. If you fail to perform adequate research and analysis before making trades, you might make impulsive decisions that lead to losses.

Excessive Leverage

Intraday traders often use high levels of leverage to amplify their potential gains. However, this also magnifies your risk exposure. Using excessive leverage can result in significant losses if a trade goes against your position.

Ignoring Stop-Loss Orders

Stop-loss orders are a crucial risk management tool for intraday traders, as they help limit potential losses. If you fail to set appropriate stop-loss levels or neglect to use them altogether, you are more vulnerable to large losses.

Lack of Discipline and Emotional Control

Intraday trading can be an emotionally taxing activity, with rapid price fluctuations and the potential for quick gains or losses. If you cannot maintain discipline and control your emotions, you are more likely to make impulsive, irrational decisions that undermine your trading performance.

Inadequate Risk Management

Effective risk management is essential in intraday trading. If you do not have a well-defined risk management strategy, including position sizing, diversification, and risk-to-reward ratios, you are more likely to experience significant losses.

Trading Illiquid Stocks

Intraday traders should focus on stocks with high liquidity, as they are easier to buy and sell at desired prices. Trading in illiquid stocks can lead to slippage, where the actual execution price differs from the expected price, resulting in losses.

Overtrading

Intraday trading can be tempting, with the potential for quick profits. However, if you engage in excessive trading, often driven by greed or fear, you are more likely to make mistakes and incur losses.

Who Can Do Intraday Trading?

Intraday trading may not be suitable for all investors. It is generally recommended for experienced traders who have a deep understanding of market dynamics, strong risk management skills, and the ability to make quick, informed decisions. Beginners and inexperienced traders may find intraday trading too risky and challenging, and you should consider starting with longer-term investment strategies before attempting intraday trading.

Conclusion

Selecting the right intraday stocks and employing effective trading strategies can be crucial for successful intraday trading. By considering factors such as liquidity, volatility, news, and technical indicators, you can identify potential trading opportunities. Additionally, using technical analysis tools and implementing risk management techniques may help you navigate the challenges of intraday trading. Remember to conduct thorough research and stay informed about market developments to enhance your trading outcomes.

FAQs About Intraday Stocks