Top Intraday Stocks in India

What is Intraday Trading?

Intraday trading means buying and selling stocks on the same day. This means all trades are squared off before the market closes, and no overnight exposure. The objective is to profit from short-term price movements and market volatility.

About the Top Intraday Stocks in NSE

1. Ather Energy Ltd: Ather Energy: Ather Energy makes electric scooters and smart mobility solutions in India, focused on advanced battery tech, IoT enabled vehicles and sustainable urban mobility.
2. Belrise Industries Ltd: Belrise Industries manufactures and supplies chemicals and specialty products for industrial applications, to various sectors with customised solutions.
3. JK Cement Ltd: J K Cement produces cement and ready mix concrete in India, for construction, infrastructure and real estate projects with a focus on quality and durability.
4. Trent Ltd: Trent operates Westside and Zudio retail chains, offering fashion, apparel and lifestyle products across India through physical stores and online platforms.
5. NMDC Steel Ltd: NMDC Steel produces steel and iron ore products for India’s infrastructure, construction and industrial sectors with integrated mining and steel-making operations.

How to Invest in Intraday Stocks in India?

Here is how one can invest in the top intraday stocks for trading:

1. Open a trading account or demat account. You can open a demat account with smallcase. 
2. Investors can utilise tools like the Tickertape Stocks Screener to explore the best day trading stocks for today. They can use pro filters like the ‘Momentum Monsters’ to learn about the stocks experiencing strong price momentum. Additionally, there are 200+ filters that you can use to create different screeners for comparison of the best intraday stocks and to find the best sectors for intraday trading under ₹100. 
3. Place a ‘Buy’ order on the best intraday stocks of your choice.

Objectives of Intraday Trading

• Capitalising on Short-Term Price Movements: Intraday traders buy low and sell high to make the most of small price movements within a day. The best stocks for intraday trading are those with high volatility and high liquidity.
• Mitigating Overnight Risks: Another objective of intraday traders is to close all positions before the market closes to avoid overnight risks due to news or events that can impact stock prices. This helps to minimise overnight risks.
• Exploiting Market Volatility: Intraday trading benefits from market volatility. Traders can look for the best stocks for day trading in India that experience significant price fluctuations throughout the day, as they offer trading opportunities.
• High Liquidity Intraday Stocks: Intraday traders can opt for high liquidity stocks to ensure quick buying and selling with minimal price impact. High liquidity means efficient trade execution and less slippage.

Tools for Technical Analysis of Intraday Stocks

• Moving Average: This indicator tracks the average closing prices over a set period, helping to reveal a stock’s price trend.
• Bollinger Bands: More detailed than moving averages, Bollinger Bands feature three lines: the moving average, an upper band, and a lower band. Together, they offer a clearer view of price fluctuations.
• Momentum Oscillators: These measure how a security’s price changes over time, helping gauge its momentum. This can help intraday traders track price movements of the best shares for intraday trading. 
• Relative Strength Index (RSI): This measures the strength of recent price movements, indicating the magnitude of recent changes.
• Volume Analysis: The tool examines trading volume to understand the strength of a price move. High volume during price increases may signal strong buying interest, while high volume during price declines may indicate strong selling pressure.

Advantages of Intraday Trading

• Lower Commission Charges: Brokerage fees for intraday trades are generally lower because delivery charges are avoided. This reduction in fees can be substantial, as intraday brokerage costs are often one-tenth of those for standard trading. Additionally, all relevant tax implications of intraday trading in India and fees are included in the brokerage fee.
• Liquidity: Funds invested in intraday trades, including the top intraday stocks under ₹100, can be quickly recovered, maintaining liquidity and allowing investors to access their money when needed. Unlike asset purchases in standard trading, the capital remains available.
• Avoiding Overnight Risk: Intraday trades are not exposed to the risks of overnight market changes, which can affect stock prices and impact returns.

Risks of Intraday Trading

• Market Volatility: Intraday trading is sensitive to price movements because trades have to be opened and closed on the same day. Sudden news or market events can cause wild price swings, making it challenging to decide.
• High Exposure & Leverage: Leverage amplifies both profits and losses. If the market goes against you, losses can exceed your capital in no time and can cause significant financial damage.
• Emotional Risks: Emotions like fear and greed can mess with your decision-making. Intraday trading demands discipline, as emotional reactions can lead to poor trade entries or exits.
• Risk of Losing Everything: With leverage and wild price movements, you can lose your entire investment in a very short time. Intraday trading is very risky for those who don’t have good risk management.
• High Transaction Costs: Frequent buying and selling can result in high brokerage and transaction fees, potentially eating into your profits or worsening your losses, especially if you make multiple trades a day.

Factors to Consider When Investing in Intraday Stocks

• Liquidity: Liquidity in intraday stocks is key for intraday trading. It allows you to buy and sell the best intraday stocks without moving the stock price too much.
• Volatility: Volatile stocks for day trading with significant price movements can be good for intraday traders. Volatility refers to how much a stock moves. Higher volatility means more opportunities for short-term gains.
• News and Events: You can stay up to date with market news and events like earnings, economic data and geopolitical events. These can move the price and create trading opportunities in the top intraday stocks today.
• Technical Indicators: Technical analysis for intraday stocks is functional. Hence, charts like moving averages, RSI and Bollinger Bands can show trends, momentum, and volatility.