Best Intraday Stocks : How to Find Them?

Last updated:
best stock for intraday trading

Best Stocks for Intraday : Introduction

Intraday trading is a popular way of earning profits through stock markets. It refers to the process of buying and selling stocks in a day using several online platforms, hence known as day trading or intraday trading. The main purpose of intraday or day trading is to earn profits from the movement of market indices. 

Suppose, the opening price of a stock is Rs. 500. Now, within an hour or two, the price reaches Rs. 550. Let's say you've purchased 1000 stocks at the opening rate and sold them at the closing rate of Rs. 550. In this way, you'd have made a solid profit of Rs. 50,000 in a day. This is how intraday trading works.

List of Stocks for Intraday Trading: How to Find? 

Intraday trading works in an entirely different manner than other forms of investing in the stock market. When done right, day trading can offer many advantages to investors. Some of them are as follows:

Intraday Trading has No Place for Overnight Risk 

If you don't already know, there is a risk associated with holding the stocks overnight. This risk can be ignored with intraday trading. The main advantage of day trading is that all positions are cleared the same day. Therefore, you don't need to hold the stocks and hence, there are no chances of your money getting stuck. 

Intraday Trading can Lead You to Earn Profits Even When the Market is Falling 

Another fascinating thing about day trading is that it allows you to make profits even when the market is falling. This is possible with a strategy known as "short selling". It refers to selling a stock when the price is high and then buying it at the falling price later. 

Reap Benefit from Margin in Intraday Trading

Day trading can be even more beneficial for the traders in terms of the margins their stock brokers provide. In intraday trading, you just have to pay a small fee according to the total value of your order. This amount is used as compensation for the losses. For seasoned traders, this amount goes as high as 10 to 15 times as they generate higher brokerage. However, if you are a beginner, then you can make use of the fixed margins provided by your stock broker. When used correctly, these margins can be highly beneficial for day traders. 

Technical Analysis for Higher Profits in Intraday Trading

If you really want to maximize your profits from the stock market, then performing a fundamental analysis is very important. It refers to the study or analysis of the financial status and performance of a company. However, it is a very time-consuming and tedious task. But here is the good thing about day trading, you can conduct a technical analysis rather than a fundamental analysis to select the right stocks. When you ace technical analysis, nothing can stop you from earning exponentially from day trading. 

Earn a Regular Income through Intraday Trading

There is no denying that intraday trade is risky, but the one reason it is steadily gaining popularity is that the returns are substantial. With appropriate trading strategies, you can easily build an alternative source of income by simply trading for a few hours each day. This can be done from the comfort of your home or office. Over time, with carefully-structured investment strategies, it may well become your primary source of income.


Disclaimer: The securities quoted are exemplary and not recommendatory. Past performance is not indicative of future returns

Best Intraday Stocks For 2022:

Usually, most actively traded stocks are the ones that are being used for intraday trading. In the below list, we share the top 10 most active stocks:-

Company NSE Code Industry Market Cap (Cr)
Tata Motors TATAMOTORS Four Wheelers 1,55,817
SBISBINPublic Banks5,42,081
CIPLACIPLA Healthcare89,210
Axis BankAXISBANKPrivate Bank 2,72,887
JSW SteelJSWSTEELIron and Steel 1,74,478
Adani Green ADANIGREENRenewable Energy 3,20,600
WiproWIPRO IT Services & Consulting2,20,513
Oil and Natural Gas Corporation Ltd. ONGC Oil and Gas1,76,816
Bharti Airtel BHARTIARTLTelecommunication 4,89,278
Infosys INFYIT Services6,86,182

(Data as of November 25, 2022)

Disclaimer: The securities quoted are exemplary and not recommendatory. Past performance is not indicative of future returns

Best Intraday Stocks: How to Select Best Stocks for Intraday Trading? 

1. Always Pick Liquid Stocks as the Best Intraday Stocks

Liquidity is perhaps the biggest concern of an intraday trader. It is extremely important to pick the liquid stocks because they need to be bought and sold on the same day. Enough liquidity in a stock means you can buy and sell it anytime you want. This helps in getting hands-on potential gains coming from large price movements. Another thing is, to look for shares with high volume so that they can be traded in higher quantities without having any impact on the price. 

2. Stay Away from Volatile Stocks while choosing the Best Intraday Stocks

The gains and benefits of day trading are directly proportional to the price movement of stocks during the trading day. However, as a mindful trade, avoid investing in volatile stocks as they can turn price movement to be negative. We understand that investing in volatile stocks seems very intimidating, but keep in mind that the outcomes of this can be very negative. 

3. Best Shares for Intraday: Invest in Interrelated Stocks 

A great intraday trading strategy is to invest in stocks that are correlated with each other, whether in terms of an index or a sector. The simple idea behind this strategy is, that the performance of a sector or an index offers a clear indication of the market trend and thus helps in earning better returns. You can easily check the performance of any sector from the NSE official website. 

4. To Find the Best Stocks for Intraday Trading, Stick to Market Trends 

The market trends are very helpful in determining the movement of stocks. One of the easiest ways to make profits from day trading is to follow the market trend. Select the stocks that are capable of rising when the market is bullish and so on. 

5. Emphasize Transparent Companies while Choosing the Best Intraday Stocks

It is always advisable to invest in companies that are very transparent about their operations. When you have all the information about the stock available, you can make much better and more informed decisions. On the other hand, if a company has kept its operations hidden from the market, it could end up in the wrong position, which in turn could result in hefty losses. So, only the companies that have made crucial information available to the public should be chosen for intraday trading. 

6. Trade Stocks That Are "News-sensitive" while Choosing the Best Intraday Stocks

A great day trading stock selection strategy is to pick the stocks that are very sensitive to news. The logic behind this is that these scrips react to any negative or positive news reported by the media. Once you get to know about the stock movement triggered by the news, you can take positions easily. However, be very careful while following this strategy as sometimes the opposite also happens. That means the stock price may rise despite the negative news and vice-versa. To mitigate this risk, always trade with a stop loss. 

7. Do Technical Analysis while Choosing the Best Intraday Stocks

You have to identify the support and resistance levels of the stocks in which you are going to take intraday trades. Create a chart with proper levels so that you can strategize your entry and exit properly. Since there are higher risks associated with intraday stock trading, you should have expertise, and confidence along with strong diligence over the stock price movements.

And there you have it!!


Disclaimer: The securities quoted are exemplary and not recommendatory. Past performance is not indicative of future returns

  • Is intraday trading profitable?

  • Which strategy is best for intraday trading?

  • Is intraday trading good for beginners?