Let’s quickly review what intraday trading comprises before getting into the list of the fine Best Stocks for Intraday Tomorrow trading. Intraday trading, often known as day trading, is the act of buying and selling financial products on the same trading day. The primary objective is to capitalize on short-term price movements, aiming to profit from fluctuations in stock prices.
What is the intraday trading ?
Intraday trading refers to the practice of buying and selling shares or other trading instruments on the same day to capitalize on price fluctuations during the trading session.
In summary, a trader closes their open trades before the end of the trading session. This eliminates overnight risks that could affect their profits.
In recent years, there has been a surge in intraday trading volume due to the increasing number of demat accounts. Trading costs have also reduced significantly as discount brokers charge only nominal fees compared to traditional brokers.
Even during the COVID-19 lockdown, intraday trading gained momentum. People, confined to their homes, chose day trading as a source of income generation.
Intraday trading is possible in any segment, whether it’s cash, futures and options (F&O), commodities, or currency derivatives. Traders can also take leveraged positions in shares that are not available in the F&O segment.
While intraday trading eliminates the overnight risk, there are other risks involved, such as sudden news during trading hours, volatility in instruments, and instability in tools. Other factors like trading strategy, money management, and risk management also impact traders’ profitability in the long run.
Trading is a domain where profits and losses are influenced by human psychology. A trader’s decision-making ability is highly influenced by their mental state. Overconfidence or excessive optimism due to big profits or a winning streak can lead to taking high risks or holding positions for a longer duration in the hope of breaking even. This can result in significant losses or breaking the balance.
Similarly, due to recent declines or a series of declines, traders may take smaller positions despite having a sound trading setup. They may also quickly exit in situations where profit-taking is favorable. Therefore, trading based on a trading plan is crucial rather than trading based on emotional biases and internal feelings.
Factors to Consider when Selecting Optimal Best Stocks for Intraday Tomorrow.
Trader’s Criteria:
Traders should first determine how much risk they are willing to take per trade. They should also limit the maximum number of open positions. Managing multiple trades can be challenging as different stocks may have varying durations for opening and closing trades.
Corporate Events:
If a trade is based on a technical setup, it is wise to check if any corporate events are scheduled for that particular stock. This check should be done on a regular basis. Such events come with challenges and opportunities. It is good to stay informed about any scheduled corporate events, regardless of the outcome.
Volatility and Liquidity:
Trader’s Criteria:
Traders should first determine how much risk they are willing to take per trade. They should also limit the maximum number of open positions. Managing multiple trades can be challenging as different stocks may have varying durations for opening and closing trades.
Corporate Events:
If a trade is based on a technical setup, it is wise to check if any corporate events are scheduled for that particular stock. This check should be done on a regular basis. Such events come with challenges and opportunities. It is good to stay informed about any scheduled corporate events, regardless of the outcome.
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Volatility and Liquidity:
Volatility and liquidity are also crucial for intraday trading. High volatility means significant price fluctuations during the day, which leads to more trading opportunities. Low volatility indicates fewer trading opportunities. However, liquidity is important for entry and exit, as it allows for smooth execution of trades.
Traders should avoid highly volatile and illiquid stocks. There are times when traders get stuck in one side of the trade due to circuit limits. The difference between bid and ask prices can also be substantial, affecting trading costs. This applies to penny stocks as well as low-volume indices and stock options.
Volatility is attributed to the behavior of stocks. Instead of looking at volatility patterns on specific days or weeks, traders should select stocks that have a history of volatility and high trading volume, making them favorable candidates for active traders. The following list highlights NSE and BSE’s top intraday shares based on their volatility and liquidity. However, stocks should not be considered final on the list as their volatility and liquidity can change over time.
Volatility and liquidity should both be taken into account when choosing equities for intraday trading. These factors should be at the forefront of a trader’s mind. The market trends, stock news, and technical trading setups, which can be added to your watchlist and constantly watched, especially when stocks are trading at high or low levels during the day, are some other factors to keep in mind.
To create an optimal list of stocks for intraday trading, you can utilize indicators like Average True Range (ATR) and standard deviation. ATR can be calculated for any time period, such as the past 50 or 100 days. For liquidity, you can consider the average trading volume over the past 100 days to identify highly liquid stocks. It is advisable to choose stocks that rank high in both liquidity and volatility for intraday trading.
The Nifty and Bank Nifty indices are popular instruments for intraday trading since they are closely tracked by institutions and the general public. You should be aware that top-market-cap stocks like Reliance, HDFC, HDFC Bank, Infosys, and TCS are not included in this list. Although these stocks are highly liquid, they are not excessively volatile due to their size and stability in their respective businesses. Additionally, it’s worth mentioning that many stocks in the above list belong to the banking and NBFC sectors, which are known for their high volatility and substantial trading activity.
Volatility and liquidity are also crucial for intraday trading. High volatility means significant price fluctuations during the day, which leads to more trading opportunities. Low volatility indicates fewer trading opportunities. However, liquidity is important for entry and exit, as it allows for smooth execution of trades.
Traders should avoid highly volatile and illiquid stocks. There are times when traders get stuck in one side of the trade due to circuit limits. The difference between bid and ask prices can also be substantial, affecting trading costs. This applies to penny stocks as well as low-volume indices and stock options.
Volatility is attributed to the behavior of stocks. Instead of looking at volatility patterns on specific days or weeks, traders should select stocks that have a history of volatility and high trading volume, making them favorable candidates for active traders. The following list highlights NSE and BSE’s top intraday shares based on their volatility and liquidity. However, stocks should not be considered final on the list as their volatility and liquidity can change over time.
Volatility and liquidity should both be taken into account when choosing equities for intraday trading. These factors should be at the forefront of a trader’s mind. The market trends, stock news, and technical trading setups, which can be added to your watchlist and constantly watched, especially when stocks are trading at high or low levels during the day, are some other factors to keep in mind.
To create an optimal list of stocks for intraday trading, you can utilize indicators like Average True Range (ATR) and standard deviation. ATR can be calculated for any time period, such as the past 50 or 100 days. For liquidity, you can consider the average trading volume over the past 100 days to identify highly liquid stocks. It is advisable to choose stocks that rank high in both liquidity and volatility for intraday trading.
The Nifty and Bank Nifty indices are popular instruments for intraday trading since they are closely tracked by institutions and the general public. You should be aware that top-market-cap stocks like Reliance, HDFC, HDFC Bank, Infosys, and TCS are not included in this list. Although these stocks are highly liquid, they are not excessively volatile due to their size and stability in their respective businesses. Additionally, it’s worth mentioning that many stocks in the above list belong to the banking and NBFC sectors, which are known for their high volatility and substantial trading activity.
Best Stocks for Intraday Tomorrow–
IndusInd Bank:
IndusInd Bank is a leading private sector bank in India, offering a wide range of banking and financial services. Established in 1994, it is headquartered in Mumbai, Maharashtra. Through its nationwide network of branches and ATMs, the bank provides services to corporate clients, small and medium-sized businesses (SMEs), and individual customers.
Market Cap: INR 100,344 crores. The promoter group holds a 16.51% share, while the remaining 83.51% is collectively owned by FIIs, the public, and others. The stock trades an average of 8.30 crore shares each day, with a 20-day average volume of 36.43 lakh shares.
Mahindra & Mahindra:
Mahindra & Mahindra (M&M) is one of the biggest conglomerates in India and was founded in 1945. The firm focuses in producing tractors, commercial vehicles, two-wheelers, and utility vehicles.M&M is well-known as a top automaker in India and has a sizable position in the worldwide auto industry. automotive market.
Market Cap: INR 1,65,196 crores. As of March 2023, the promoter group holds a 19.37% share, while 80.63% is owned by mutual funds, FIIs, banks, insurance companies, corporate bodies, and individual investors. The company has a 20-day average volume of 24.69 lakh shares and an average daily trading volume of 15.64 crores.
Tata Consumer Products:
Tata Consumer Products operates in the beverages and food products segments. The company manufactures and sells a variety of hot and cold beverages under the heading of beverages. It offers popular brands like Tata Tea, Tetley, Good Earth, and JEMCA, catering to diverse consumer preferences for tea, coffee, and herbal infusions worldwide.
Market Cap: INR 73,475 crores. The promoter group holds approximately 34.44% of the total shares, while 65.56% is owned by mutual funds, other institutions, and the general public. The stock has a 20-day average volume of 9.04 lakh shares and an average daily trading volume of 2.5 crores.
Tech Mahindra:
Tech Mahindra: Tech Mahindra offers a wide selection of IT products and services to a number of sectors, including telecommunications, healthcare, banking, and retail. The company specializes in digital transformation, consulting, and business process outsourcing (BPO) services.
Market Cap: INR 1,07,023 crores. The promoter group holds approximately 35.18% of the total shares, while 64.82% is owned by FIIs, mutual funds, and public and other institutions. The stock has an average daily trading volume of 12.93 crores and a 20-day average volume of 1 lakh shares.
Sun TV:
Sun TV operates a network of television channels in multiple languages, including Tamil, Telugu, Malayalam, Kannada, and Bengali. It offers a variety of content, including entertainment shows, movies, news, music, and sports programs. Sun TV has gained significant popularity and has a substantial viewer base, particularly in the southern states of India.
Market Cap: INR 17,649 crores. The promoter group holds 75% of the total shares, and the remaining 25% is held by FIIs, mutual funds, the public, and others. The stock has an average daily trading volume of 1.42 crores and a 20-day average volume of 4.91 lakh shares.
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Please note that the above information provides a brief overview of each company and should be used as a reference for selecting stocks suitable for intraday trad