Best Stocks for Intraday Trading now in India 2024

In the below article, we will cover,

• What is Intraday trading?
• Factors to Consider While Picking Best Stocks for Intraday Trading
• List of Best Intraday Stocks to Buy now in India
• Methods to select stocks for intraday trading
• A detailed table with various parameters for Best Intraday Stocks to buy

What is Intraday trading?

Intraday trading means a trader is buying and selling shares or other trading instruments on the same day to benefit from the stock price movement during the day.

In short, a trader closes his open trades before the closing of the trading session. He does not carry any overnight risk that can affect his profits.

There has been a sharp surge in intraday trading volumes in recent years due to  rising number of demat accounts. The trading costs have reduced drastically as  discount brokers charge only nominal fee compared to traditional brokers.

Intraday trading got a booster during the Covid-19 lockdowns as well. People who were restricted to their homes picked up day trading as a source for generating income.

Intraday trading is possible in any segment whether it is cash, futures and options (F&O),  commodity or  currency derivatives. One can also  take leveraged positions in stocks that are not available in F&O segment.

Even though intraday trading eliminates overnight risk, there are other risks such as sudden news during trading hours, illiquidity in the instrument, and fluctuating volatility of the instruments. Other factors such as trading plan, money management, and  risk management also affect a traders’ profitability in the long term.

Trading is a stream where profits and losses affect human psychology. A trader’s decision-making ability is highly impacted by his state of mind. High optimism or overconfidence due to large profits or long winning streaks can lead to taking oversized positions. He might take big risk or hold losing positions for a longer time in the hope of breaking even.

Similarly, recent losses or streak of losses can lead to taking undersized positions despite the right trading setup. He might even  cut profit-making positions early. Hence, it is very important to trade based on a trading plan and not trade based on emotional bias and gut feelings.

Factors to Consider While Picking Best Stocks for Intraday Trading

There are various things to keep in mind while determining the  best stocks for intraday trading.

• Trader’s criteria

Traders must first decide the   risk they are willing to take per trade. They should also limit the maximum number of open positions. Managing multiple trades can become quite complex as long and short trades would be open in different stocks.

• Corporate event 

If trades have been taken on some technical setup, it is prudent to check if there is any corporate event scheduled on the same stock. This checkup should be done on a routine basis. Such events bring both challenges and opportunities with them. Irrespective of the  outcome, it is good to remain informed of any scheduled events.

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• Volatility and Liquidity

Volatility and liquidity are also very critical for intraday trading. High volatility means large price movements during the day that translates to more trading opportunities. Low volatility means fewer trading opportunities. The volatility should not come at the cost of liquidity as liquidity is crucial for entry and exits during the day.

Traders should avoid highly volatile and thinly traded stocks. There are times when traders are stuck on one side of the trade. They cannot exit due to illiquidity or circuit limits.

Sometimes the spread between the bid and ask prices is also wide enough which affects trading costs. This occasionally happens in thinly traded  penny stocks as well as thinly traded index and stock options.

Volatility is attributed to the behavior of stocks. The pattern of volatility should not be seen in the context of a particular day or week, rather stocks that have a history of volatile trading and are highly traded should be selected as trading candidates. One such list of stocks is mentioned below.

The list has been prepared by extensively analysing the volatility and liquidity of top intraday stocks on NSE and BSE given the recent history. However, volatility is varying in nature thus the stocks should not be considered as the ultimate list as their volatilities and liquidity can keep changing over a period of time.

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You can watch this insightful video on how to pick stocks for intraday trading especially in the futures and options (F&O) segment.

List of Best Intraday Stocks to Buy now in India

Methods to select stocks for intraday trading

• IndusInd Bank
• Mahindra & Mahindra
• Tata Consumer Product
• Tech Mahindra
• Sun TV
• NMDC
• Divis Laboratories
• State Bank of India
• DLF
• Mahanagar Gas LTD

Volatility and liquidity should be primarily at the top of a trader’s mind while selecting stocks for intraday trading. However, other factors like  market cycles, stocks in the news, and stocks with technical trade setups can be included in the list and actively tracked especially when they are trading at day’s high or day’s low.

One can use indicators like ATR, standard deviations to prepare a list of best stocks for intraday trading. One can use it over a period of time say in the last 50 or 100 days. Whereas for liquidity; average turnover of the last 100 days can be used to determine top liquid stocks. Stocks that appear at the top of both liquidity and volatility lists should then be selected for the trading universe.

Nifty and  Bank Nifty indices are the highest traded instruments for intraday trading as institutions and public track these indices. One important thing to notice in the above-given list is that we have excluded top market cap stocks like Reliance, HDFC, HDFC Bank, ITC, Infosys, and TCS. These stocks are highly liquid but they are not highly volatile due to their size and stability in their business. One more thing to notice in the above list, many stocks are from the banking and NBFC sector which are highly volatile sectors and are largely traded.

Brief details about each company from the watchlist table will give you an idea of what kind of stocks should be selected for intraday trading.

• IndusInd Bank

IndusInd Bank is a leading Indian private sector bank that provides a wide range of banking and financial services. It was established in 1994 and is headquartered in Mumbai, Maharashtra, India. The bank operates through a network of branches and ATMs across the country, serving individual customers, small and medium-sized enterprises (SMEs), and corporate clients.

The bank has a market cap of Rs. 114157 Cr. with the promoter group holding 16.51% shares while the rest 83.51% are held by FIIs, public, and others collectively. The stock has beta of 1.25 and the 20-day average volume is 34.05 lac shares.

• Mahindra & Mahindra

M&M was established in 1945 and has since grown into one of the largest corporations in India. The company is known for its expertise in manufacturing utility vehicles, tractors, commercial vehicles, and two-wheelers. M&M is recognized as one of the leading automobile manufacturers in India and has a significant presence in the global automotive market.

 It has a market capitalization of Rs. 193772 Crore. As of March 2023, 19.38% shares are owned by promoters and promoter groups. The remaining 80.62% of total shares are owned by mutual funds, FIIs, banks, insurance companies, corporate bodies, and individual investors among others. The stock has beta of 1.12 and the 20-day average volume is 19.34 lac shares.

• Tata Consumer Product

Tata Consumer Products operates in two main categories: Beverages and Foods. Under the Beverages segment, the company is involved in the production and distribution of a wide range of hot and cold beverages. It offers well-known brands such as Tata Tea, Tetley, Good Earth, and JEMCA, providing a diverse selection of teas, coffees, and herbal infusions to cater to different consumer preferences globally.

The company has a market capitalization of Rs. 83513 Crore. Promoter group holds around 34.44% of the total shares while 65.56% are held by mutual funds, other institutions, and the public. The stock has beta of 0.81. The 20-day average volume is 16.19 lac shares

• Tech Mahindra

Tech Mahindra offers a wide range of IT services and solutions to clients across industries such as telecommunications, healthcare, banking and financial services, manufacturing, and retail. The company specializes in digital transformation, consulting, and business process outsourcing (BPO) services.

Tech Mahindra has a market cap of Rs. 114208 Cr. Promoter group holds around 35.22% of total shares while 64.78% are held by FII, mutual funds, and public and other institutions. The stock has beta of 1.06. The 20-day average volume is 23.95 lac shares.

• Sun TV

Sun TV operates a network of television channels in multiple languages, including Tamil, Telugu, Malayalam, Kannada, and Bengali. It offers a diverse range of content, including entertainment shows, movies, news, music, and sports programs. Sun TV has gained immense popularity and has a significant viewership base, especially in the southern states of India.

The company has a market cap of Rs. 25621 Cr. The promoter group holds 75% of total shares and the remaining 25% of the total is held by FII, mutual funds, public, and others. The stock has beta of 0.76. The stocks 20-day average daily trading volume of 15.56 lac shares.

• NMDC

NMDC (National Mineral Development Corporation) Limited is an Indian state-controlled mineral producer and explorer. It is a public sector undertaking and is headquartered in Hyderabad, Telangana, India. NMDC is one of the largest iron ore mining companies in India and is involved in the exploration, mining, and processing of a variety of minerals.

 The company has a market cap of Rs. 46318 Cr. Promoter group holds 60.79% stake in the company and the rest 39.21% is held by FII, DII, insurance companies, institutions, and the public. The stock has beta of 0.95. The 20-day average volume of the stock is 1.6 cr shares.

• Divis Laboratories

Divi's Lab has established itself as a leading player in the global pharmaceutical industry and is known for its expertise in the production of complex APIs and intermediates. The company operates multiple manufacturing facilities that adhere to stringent quality standards and comply with global regulatory requirements.

The company has a market capitalization of Rs. 94355 crores in which the promoter group holds 51.94% shares and 48.06% shares are held by mutual funds, FII and others. The stock has beta of 0.25. The 20-day average volume of the stock is 2.9 lac shares.

• State Bank of India

As a full-service bank, SBIN offers a wide range of financial products and services to its customers, including personal and corporate banking, loans, deposits, credit cards, wealth management, insurance, and investment services. The bank operates through a vast network of branches and ATMs across India and has a significant presence in international markets as well.

 The company has a market capitalization of Rs. 502544 crores in which the promoter group holds 57.52% shares and 42.48% shares are held by mutual funds, FII and others. The stock has beta of 1.23. The 20-day average volume of the stock is 1.3 cr shares.

• DLF

DLF has been involved in the construction and development of various landmark projects across major cities in India, including luxury residential complexes, office spaces, shopping malls, hotels, and townships. The company has a diverse portfolio that caters to different segments of the market, ranging from affordable housing to high-end luxury properties.

DLF has a market capitalization of Rs 117478 crores. The promoter group holds 74.95% in the company while 25.05% is held by FII, insurance companies, and the public. The stock has beta of 1.2. The 20-day average volume of the stock is 35.57 lac shares.

• Mahanagar Gas LTD

MGL plays a crucial role in the distribution of natural gas in Mumbai, which is an environmentally friendly and cost-effective alternative to traditional fuels such as gasoline, diesel, and liquefied petroleum gas (LPG). The company has established an extensive pipeline network for the distribution of natural gas, covering various parts of Mumbai and its surrounding areas.

Mahanagar Gas Ltd has a market cap of Rs. 10174 Cr in which the promoter group holds 32.55% shares while the remaining 67.45% stake is held by FIIs, mutual funds, institutions, and the public. The stock has beta of 0.55. The 20-day average volume is 8.36 lac shares

• Havells India Ltd

Havells India Ltd is a prominent Indian electrical and power distribution equipment manufacturer. The company is headquartered in Noida, India, and it is one of the country's largest electrical equipment companies. Havells Group, which has a diverse portfolio of businesses. It enjoys enviable market dominance across a wide spectrum of products, including Industrial & Domestic Circuit Protection Devices, Cables & Wires, Motors, Fans, Home Appliances, Air Conditioners, Electric Water Heaters, Commercial and Industrial Applications, etc.

 It has market cap of Rs. 81026 Cr in which the promoter group holds 59.45% shares while the remaining 40.55% stake is held by FIIs, mutual funds, institutions, and the public. The stock has beta of 0.71. The 20-day average volume is 7.91 lac shares

Here’s a quick video from our team on how you can select the Best Intraday Stocks:

A detailed table with various parameters for the Best Intraday Stocks to buy:

Our Collection of  Best Stocks to Buy

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