Intraday trading can be risky if you do not pick the right stocks. As an intraday trader, you need to be able to identify stocks that have the potential for good returns within the day. Here are some expert tips to help you find the best intraday stocks today that may give you good profits.
Table of Contents
How to Pick Stocks for Intraday Trading?
Before looking at specific stocks for intraday trading today, it’s essential to understand what criteria you need to use to select good intraday stocks:
1. Analyse Historical Intraday Price Movements
Look at how much the stock price has fluctuated intraday over the past few months. Stocks showing large price movements within the day offer more profit potential. Check factors like the day’s high and low prices, opening and closing price movements, etc.
2. Volume
Volume indicates investor interest and liquidity. Choose stocks trading at least 1-1.5 times their average volume in recent days. This shows increased activity that can drive intraday price changes.
3. Volatility
Volatile stocks with price fluctuations allow you to enter and exit with profits within a day. Use beta, average true range and volatility ratio to find volatile intraday stocks.
4. News and Events
Company—or sector-specific news/events like earnings, mergers, etc., can lead to high volatility as investor sentiments sway. Keep track of upcoming events related to a stock.
5. Technical Indicators
Indicators like RSI, MACD and moving averages can identify intraday trends, support/resistance levels, momentum, oversold/overbought conditions, etc. Use these to time your entry exit.
Top Intraday Trading Stocks Currently
The top intraday trading stocks for today are below:
1. Reliance Industries (RIL)
Reliance Industries, or RIL, is India’s largest private sector company. It has seen tremendous growth in recent years across its business verticals, such as telecom, retail, and oil and gas. This has been reflected in its stock price, which has rallied to touch new all-time highs. This demonstrates the positive sentiment of investors for RIL’s prospects.
2. Tata Motors
Tata Motors is one of India’s leading automobile manufacturers. After consolidating in a narrow range for several weeks, its stock price has managed to break out with strong momentum. This breakout has come with heavy volumes, suggesting increased participation by investors. Within a day, Tata Motors stock displays significant volatility in its price movement. This makes it well-suited for intraday traders looking to capture such price fluctuations through multiple buy-sell transactions within the same day.
3. Tata Steel
Tata Steel is one of the leading steel manufacturers in India. Sentiments for the steel sector have turned positive recently, with China lifting its lockdowns. This is expected to restart infrastructure-building activity, improving steel demand globally. Technical indicators are also bullish for Tata Steel stock to continue moving higher after its recent correction.
4. Maruti Suzuki
Maruti Suzuki is India’s largest passenger vehicle manufacturer. Positive signs like rising volumes and a bullish crossover in the momentum indicator MACD show that Maruti stock has emerged stronger now. But overall, Maruti stock looks set to regain its uptrend after the recent correction.
How to Trade These Stocks Intraday
Once you have selected stocks to trade based on expert analysis, make your intraday trading plan:
- Enter on strength: Time your entry when the stock is trading strong, either at open or during the day
- Use tight stop loss: Keep stop loss around 2-3% to exit early if the trade turns unfavourable
- Book profits at resistance: Exit when the stock hits pre-determined resistance levels during the day
- Be disciplined: Stick to your trading rules diligently. Don’t be influenced by greed or fear.
- Keep position small: Don’t take high exposure in any stock and diversify.
Conclusion
Intraday trading requires in-depth research and a structured approach. The stocks picked by experts above have potential, but still do your analysis before taking positions. Be vigilant of news events and volatility triggers when trading intraday. You can aim for consistent profits from intraday trading with the correct stock picks and risk management.
