In the below article we will cover,

1. What is Intraday Trading
2. Factors to consider while determining the best stocks for intraday trading
3. List of the best stocks for intraday trading
4. Methods to select the best stocks for intraday trading
5. A model portfolio condensed to 10 best stocks for intraday trading
6. Technical and Fundamental analysis of the top intraday stocks

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.

Samco app helps you track corporate events and news flow in your stocks easily. Download it right now.

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.

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

 

Sr.No	Company Name	BSE Scrip Code	NSE Symbol	CMP – Dec ’22	Rating
1	TATA MOTORS	500570	TATAMOTORS	421.6	0.5
2	BAJAJ FINANCE	500034	BAJFINANCE	6,596.00	5
3	JINDAL STEEL & POWER	532286	JINDALSTEL	542.9	0.5
4	INDUSIND BANK	532187	INDUSINDBK	1,229.00	3
5	Vodafone Idea	532822	IDEA	8.3	0.5
6	AXIS BANK	532215	AXISBANK	935	2
7	STATE BANK OF INDIA	500112	SBIN	603	0.5
8	INDIABULLS HOUSING FINANCE	535789	IBULHSGFIN	147	4
9	ZEE ENTERTAINMENT	505537	ZEEL	250	0.5
10	TATA STEEL	500470	TATASTEEL	111	0.5
11	ICICI BANK	532174	ICICIBANK	902	4
12	BHARTI AIRTEL	532454	BHARTIARTL	822.75	0.5
13	BANDHAN BANK	541153	BANDHANBNK	247.3	4
14	RBL BANK	540065	RBLBANK	164.8	1
15	SHRIRAM TRANSPORT FINANCE CO	511218	SRTRANSFIN	1,370	4

Methods to select stocks for intraday trading

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.

Axis Bank

Axis Bank is the third-largest private-sector Indian bank and offers a range of financial products. The bank has its head office in Mumbai. It has 4758+ branches, a wide network of ATMs, and 10+ international offices. It sells financial services to large and mid-size companies, SME and retail businesses. It has a market capitalization of Rs. 2,90,167 Crore. As of Sept 2022, 09.69% shares are owned by promoters and promoter groups. The remaining 90.33% of total shares are owned by mutual funds, FIIs, banks, insurance companies, corporate bodies, and individual investors among others. The average trading range for the stock ranges from 2 to 4 percent with a daily turnover of more than 1400+ Cr. The stock has an average daily trading volume of 7,063+ lac shares.

Bajaj Finance

Bajaj Finance Limited is one of the largest players in the burgeoning consumer finance segment in India and a pioneer in introducing interest-free EMI finance options in more than 50 categories, ranging from consumer durables to lifestyle products to groceries. Apart from consumer finance, the company also has substantial business penetration in SME, commercial, and rural lending. The company has a market capitalization of Rs. 4,04,082+Crore. Promoter group holds around 55.86% of the total shares while 44.13% are held by mutual funds, other institutions, and the public. The average daily range for the stock remains around 1% to 3% with an average daily turnover of more than 2400 Cr. Stock has an average daily trading volume of 901+ lacs.

Bandhan Bank

Bandhan Bank Ltd. is an Indian banking and financial services company headquartered in Kolkata, West Bengal. The bank’s total banking outlets as on March 31, 2019 stood at 4000. The network consists of 986 branches and 3,014 Doorstep Service Centers (DSCs). Total number of ATMs stood at 481.

Bandhan Bank has a significant presence in under-penetrated East and North East India. Bank has a market cap of Rs. 39,586+ Cr. Promoter group holds around 39.99% of total shares while 60.02% are held by FII, mutual funds, and public and other institutions. The stock has an average trading range from 1.5% to 4% and an average daily turnover of more than 400+ Cr. Stock has an average daily trading volume of 6,178+ lacs.

Bharti Airtel

Bharti Airtel Limited, also known as Airtel, is an Indian global telecommunications services company based in New Delhi. It operates in 18 countries across South Asia and Africa. Airtel provides GSM, 3G, 4G LTE, 4G+, 5G mobile services, fixed-line broadband, and voice services depending upon the country of operation. Airtel had also rolled out its VoLTE technology across all Indian telecom circles.

It is the second-largest mobile network operator in India and the second-largest mobile network operator in the world with over 420 million subscribers. The company has a market cap of Rs. 4,85,607 Cr. The promoter group holds 55.14% of total shares and the remaining 44.85% of the total is held by FII, mutual funds, public, and others. The stock has an average daily range of 1.50% to 3.50% and an average daily turnover of more than 1100+ crores. Stock has an average daily trading volume of 4,408+ lac shares.

Indiabulls Housing Finance

Indiabulls Housing Finance Limited is a mortgage lender headquartered in New Delhi. It is India’s second-largest housing finance company and is regulated by the National Housing Bank. It is part of the Indiabulls group and contributes approximately 80% of the group’s turnover.

The company has a market cap of Rs. 7,074+ Cr. Promoter group holds 09.60% stake in the company and the rest 90.42% is held by FII, DII, insurance companies, institutions, and the public. The stock has an average trading range from 2% to 5% and an average daily turnover of more than 450+ crore. Stock has an average daily trading volume of 13,824+ lac shares.

IndusInd Bank

IndusInd Bank Limited is an Indian new generation bank in Pune, established in 1994. The bank offers commercial, transactional, and electronic banking products and services. As of June 2022, IndusInd Bank had nearly 2000+ branches, and around 2886+ ATMs spread across different geographical locations of the country. It also has representative offices in London, Dubai, and Abu Dhabi.

The bank has a market cap of Rs. 94,828+ 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 an average trading range from 1% to 4% and an average daily turnover of more than 1300+ crores. Stock has an average daily trading volume of 2,038+ lac shares.

Jindal Steel & Power

Jindal Steel and Power Limited (JSPL) is an Indian steel and energy company based in Hisar. With a turnover of approx. US$ 5.5 billion, JSPL is a part of about US$18 billion diversified Jindal Group conglomerate. JSPL is a leading player in steel, power, mining, oil and gas and infrastructure in India. The company produces steel and power through backward integration from its own captive coal and iron-ore mines. In terms of tonnage, it is the third-largest steel producer in India.

The company manufactures and sells sponge iron, mild steel slabs, ferro chrome, iron ore, mild steel, structural, hot rolled plates and coils, and coal-based sponge iron. The company has a market capitalization of Rs. 56,217+ crore in which the promoter group holds 61.20% shares and 38.79% shares are held by mutual funds, FII and others. The stock has an average daily trading range from 2% to 5% and an average daily turnover of more than 280+ crores. Stock has an average daily trading volume of 2,366+ lacs.

RBL Bank

RBL Bank is an Indian private sector bank headquartered in Mumbai and founded in 1943. It offers services across six verticals: corporate and institutional banking, commercial banking, branch, and business banking, retail assets, development banking and financial inclusion, treasury and financial market operations.

The company has a market capitalization of Rs. 10,066+ crore in which the promoter group holds 29.59% shares and 70.41% shares are held by mutual funds, FII and others. The stock has an average trading range from 2.50% to 5.00% and an average daily turnover of approx. 500+ crores. Stock has an average daily trading volume of 15,293+ lac shares.

Tata Motors

Tata Motors Limited is an Indian multinational automotive manufacturing company headquartered in Mumbai, Maharashtra. As India’s largest automobile company and part of the USD 113 billion Tata group, Tata Motors has operations in the UK, South Korea, Thailand, South Africa, and Indonesia through a strong global network of 76 subsidiary and associate companies, including Jaguar Land Rover in the UK and Tata Daewoo in South Korea. Its products include passenger cars, trucks, vans, coaches, buses, sports cars, construction equipment, and military vehicles.

Tata Motors has a market capitalization of Rs 1,49,825+ crores. The promoter group holds 46.40% in the company while 53.60% is held by FII, insurance companies, and the public. The stock has an average daily trading range of 2.50% to 5% and an average daily turnover of more than 1300+ crores. Stock has an average daily trading volume of 20,000+ lacs.

Zee Entertainment Enterprises

Zee Entertainment Enterprises Limited is the media and entertainment broadcasting company of the Essel Group. It owns a constellation of entertainment channels under the brand name of Zee. The Zee Entertainment Enterprise also owns and operates the record label of Zee Music Company and the film studio of Zee Studios.

Zee Entertainment has a market cap of Rs. 24,205+ Crs in which the promoter group holds 3.99% shares while the remaining 96.01% stake is held by FIIs, mutual funds, institutions, and the public. The stock has an average trading range from 3% to 5.30% and an average turnover of more than 500+ crores. Stock has an average daily trading volume of 6,894+ lac shares.

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

Model Portfolio:

If one wants to bring down the watchlist to 10 stocks then the below stocks will be ideal candidates for intraday trading along with Nifty and BankNifty indices

Sr. No	Company Name	BSE Scrip Code	NSE Symbol	CMP – Dec ’22
1	AXIS BANK	532215	AXISBANK	935
2	BAJAJ FINANCE	500034	BAJFINANCE	6,596.00
3	BANDHAN BANK	541153	BANDHANBNK	247.3
4	BHARTI AIRTEL	532454	BHARTIARTL	822.75
5	INDIABULLS HOUSING FINANCE	535789	IBULHSGFIN	147
6	INDUSIND BANK	532187	INDUSINDBK	1,229.00
7	JINDAL STEEL & POWER	532286	JINDALSTEL	542.9
8	RBL BANK	540065	RBLBANK	164.8
9	TATA MOTORS	500570	TATAMOTORS	421.6
10	ZEE ENTERTAINMENT	505537	ZEEL	250

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

Sr. No	NSE Symbol	CMP – Dec ’22	BSE Scrip Code	Rating	Industry	Mcap (Cr.)	VWAP (Volume Weighted Average Price) 16 Dec 2022	Average Volume	NSE Industry	ATR_pct
1	TATA MOTORS	421.6	500570	0.5	LCVS & HCVS AUTO	1,49,771.00	1369	2,77,613	PASSENGER/UTILITY VEHICLES	2.00
2	BAJAJ FINANCE	6,596.00	500034	5	LEASING & HIRE PURCHASE FINANCE	4,05,196	6,670.00	22,760	NBFC	1.79
3	JINDAL STEEL & POWER	542.9	532286	0.5	Iron & Steel	56074	548	91,825	STEEL	2.63
4	INDUSIND BANK	1,229.00	532187	3	PRIVATE SECTOR BANK	94,994	1,226.00	67,420	BANKS	2.29
5	Vodafone Idea	8.3	532822	0.5	Telecommunications – Service	26,594	8.31	22,97,154	TELECOM – SERVICES	3.52
6	AXIS BANK	935	532215	2	PRIVATE SECTOR BANK	2,89,782	940	1,91,017	BANKS	1.63
7	STATE BANK OF INDIA	603	500112	0.5	Banks – Public Sector	5,41,501	606	2,44,496	BANKS	1.59
8	INDIABULLS HOUSING FINANCE	147	535789	4	HOUSING FINANCE	7,138	149.4	2,83,649	HOUSING FINANCE	4.18
9	ZEE ENTERTAINMENT	250	505537	0.5	Media & Entertainment	24,205	251	1,36,334	TV BROADCASTING & SOFTWARE PRODUCTION	2.19
10	TATA STEEL	111	500470	0.5	Steel – Large	1,36,053	1,122.08	10,87,206	STEEL	2.26
11	ICICI BANK	902	532174	4	PRIVATE SECTOR BANK	6,33,865	906	2,90,231	BANKS	1.50
12	BHARTI AIRTEL	822.75	532454	0.5	Telecommunications – Service	4,85,057	835	1,11,509	TELECOM – SERVICES	1.72
13	BANDHAN BANK	247.3	541153	4	PRIVATE SECTOR BANK	39,409	245	2,90,346	BANKS	2.84
14	RBL BANK	164.8	540065	1	PRIVATE SECTOR BANK	9,994	165	3,04,185	BANKS	3.40
15	SHRIRAM TRANSPORT FINANCE CO	1,370	511218	4	LEASING & HIRE PURCHASE FINANCE	36,962	1,369	30,159	NBFC	3.20

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