Top Short-Term Stocks in India

Short-term stocks are stocks that are traded frequently, i.e. not held for long periods, like long-term stocks. In India, shares held for less than 12 months are seen as short-term stocks. Additionally, profits from trading them are taxed as per short-term capital gains. The investors, including day traders or swing traders, may participate in trading market-linked and debt instruments.

1. Bharat Electronics Ltd: An Indian aerospace and defence electronics player, Bharat Electronics manufactures radar, communication systems, and defence electronics for national security and technological development.
2. Eicher Motors Ltd: Eicher Motors, the company behind the Royal Enfield brand of premium motorcycles, is an auto major focused on innovation, design and global expansion.
3. Solar Industries India Ltd: A leading player in industrial explosives and blasting solutions, Solar Industries supports the mining, construction, and infrastructure sectors with advanced and efficient products and services for critical applications.
4. TVS Motor Company Ltd: TVS Motor Company manufactures motorcycles, scooters and three-wheelers, focused on sustainability, innovation and global expansion with presence in both domestic and international markets.
5. Mazagon Dock Shipbuilders Ltd: A prominent defence shipyard, Mazagon Dock Shipbuilders specialises in designing, building, and maintaining warships and submarines, contributing significantly to India’s naval defence capabilities.

Here is how one can invest in short-term stocks in the NSE in India:

1. Open a demat/trading/stockbroker account. You can open a demat account with smallcase!
2. Conduct thorough research into the Indian short-term stocks that aligns with your investment thesis. Investors can use tools like the Tickertape Stock Screener to do this. The screener offers 200+ built-in filters to choose from, and investors can choose the parameters to research.
3. Place a ‘Buy’ Order on the best short-term stocks in India of your choice.

Note: Investors should conduct thorough research and consult a financial advisor before investing in short-term stocks.

• Market Analysis: Stay on top of market trends and forecasts. Analyse economic indicators, sector performance and market sentiment to make decisions on stocks with high potential for short-term gains.
• Event-Driven Opportunities: You can look for short term stocks that react to events or news such as product launches, regulatory approvals or corporate earnings. These events cause short term fluctuations and present opportunities.
• Technical Analysis: Use technical analysis to understand price movements and trends. This involves looking at patterns in stock prices and volumes to predict future activity and short term stocks.

• High Liquidity: Short term stocks have high volume, so you can buy and sell without affecting the stock price much.
• Market Volatility: High-growth short-term stocks are more volatile and can give you quick gains. But high-volatility short-term stocks also means higher risk.
• Strong Earnings Reports: Companies with good and strong earnings are high potential short term stocks. Investors look for companies that show quarterly growth.
• Sector Trends: Short-term stocks are often influenced by market conditions and sector trends.

• Quick Returns: High-potential short-term stocks can yield fast returns due to their potential for rapid price movements within a short period.
• Liquidity: The best short-term shares typically provide high liquidity, enabling investors to convert their stocks into cash swiftly without significant loss of value.
• Diversification: Including the best short-term stocks for portfolio can enhance diversification, spreading risk across different asset classes and investment horizons.

• Market Volatility: Short term stocks are highly sensitive to market conditions, daily news, economic indicators and market sentiment. This can result in big gains and big losses even in the short-term.
• Timing and Execution: Short term investing in the share market requires perfect timing. Small mistakes can turn potential profits into losses. Short-term trading fees and taxes can impact gains, even when dealing with top short-term stocks.
• Limited Information: Investors make short term decisions based on trends rather than financials. This can increase the risk of bad investments if market sentiment changes even in the best stocks for short term.
• Emotional Trading: Short term trading of stocks is fast-paced and can lead to emotional decisions driven by fear or greed, which can amplify losses in unpredictable markets.
• Regulatory and Political Risk: Even the best stocks for the short term are more exposed to changes in regulations or political instability, which can impact stock prices.

• Company Basics and Growth Prospects: Evaluate a company’s assets and potential for growth to understand its fundamentals.
• Catalysts for Short-Term Price Changes: Identify factors such as company events or industry trends that may influence stock prices in the short term.
• Technical Research and Chart Patterns: Use technical analysis to study chart trends and indicators, helping you pinpoint potential entry and exit points.
• Trading Fees and Flow: Consider the costs associated with trading to understand their impact on your overall returns.
• Personal Risk Tolerance and Investing Goals: Align your short-term investment strategies with your risk tolerance and investment objectives.