Intraday Trading: Meaning, Strategies & a List of Top Intraday Stocks Today

Intraday trading, or day trading, involves buying and selling stocks within the same day.  Traders use online platforms such as Tickertape and smallcase to screen and execute these trades, aiming to benefit from short-term price movements. 

Successful intraday trading requires identifying stocks likely to experience significant price changes during the trading day. This approach is popular among traders who make multiple trades in a day and close all positions by market close. In this blog, we’ll discuss the best stocks for intraday trading today, key factors to consider, and the benefits and risks involved.

Top 10 Intraday Stocks in NSE for Today

Intraday Stock Name	Sector	Market Cap (in Cr)	Share Price	% Price Above 1M SMA	RSI Exponential- 14D	MACD Line 1- Trend Indicator	ADX Strength- Trend Strength
Indus Towers Ltd	Telecom Infrastructure	₹1,16,690.87	₹433.15	5.09	59.63	20.28	42.39
Rail Vikas Nigam Ltd	Specialized Finance	₹1,25,413.96	₹601.50	4.55	57.03	43.50	41.65
Mphasis Ltd	IT Services & Consulting	₹54,694.27	₹2,892.50	4.46	57.75	120.30	52.42
Oil India Ltd	Oil & Gas - Exploration & Production	₹93,944.73	₹577.55	4.12	58.98	26.05	42.85
Fine Organic Industries Ltd	Specialty Chemicals	₹16,971.22	₹5,535.30	4.07	59.24	157.63	56.77
Astrazeneca Pharma India Ltd	Pharmaceuticals	₹17,591.13	₹7,036.45	3.47	59.29	173.84	50.40
Sumitomo Chemical India Ltd	Commodity Chemicals	₹25,893.19	₹518.75	2.97	57.93	10.12	45.64
Marico Ltd	FMCG - Personal Products	₹87,271.32	₹674.10	2.79	57.86	15.87	44.12
Vardhman Textiles Ltd	Textiles	₹15,778.82	₹545.65	2.41	53.12	18.01	51.01
Doms Industries Ltd	Office Supplies	₹14,351.01	₹2,364.75	2.21	53.49	96.87	54.04

Disclaimer: Please note that the above list is for educational purposes only, and is not recommendatory. Please do your own research or consult your financial advisor before investing.

• Pro Screen: Momentum Monsters

Note: The data on the list of best intraday stocks for today is from 2nd August 2024. This data is derived from Tickertape Stock Screener.

🚀 Pro Tip: You can use Tickertape’s Stock Screener to research and evaluate stocks with over 200+ filters and parameters.

Overview of the Top Intraday Stocks in NSE

Here are brief overviews of the best shares for intraday today listed above:

Indus Towers Ltd

Indus Towers Limited is an Indian company that provides passive telecommunications infrastructure services. Based in Gurugram, Haryana, it was founded in November 2007 by Bharti Infratel (a Bharti Airtel subsidiary), Vodafone Essar, and Idea Cellular. The company offers shared telecom infrastructure to mobile network operators and other wireless service providers. Over the last 5 years, the company’s revenue has grown at a yearly rate of 28.13%, higher than the industry average of 24.86%. 

Rail Vikas Nigam Ltd

Rail Vikas Nigam Limited (RVNL) is an Indian public sector enterprise established in 2003. Operating under the Ministry of Railways, RVNL focuses on the swift implementation of railway infrastructure projects. It aims to address the country’s growing infrastructure needs and supports the development of railway equipment. Over the last 5 years, the company’s revenue has grown at a yearly rate of 17.31%, higher than the industry average of 12.66%, and its market share increased from 8.64% to 11.19%. 

Mphasis Ltd

Mphasis Limited, headquartered in Bangalore, is an Indian multinational IT services and consulting firm. It offers outsourcing for infrastructure technology and applications, along with services in architecture guidance, application development, integration, and management. Over the last 5 years, the company’s debt-to-equity ratio has been 9.06%, lower than the industry average of 14.22%, and its market share increased from 1.67% to 1.73%. 

Oil India Ltd

Oil India Limited (OIL) is a major public sector enterprise involved in exploring, developing, and producing crude oil and natural gas. It also handles the transportation of crude oil and the production of liquid petroleum gas. As a Maharatna company, OIL operates under the Ministry of Petroleum and Natural Gas. Over the last 5 years, the company’s revenue has grown at a yearly rate of 16.37%, higher than the industry average of 9.05%, and its market share increased from 3.57% to 4.94%. 

Fine Organic Industries Ltd

Fine Organic Industries manufactures oleochemical-based food, plastic, cosmetics, paint, ink and coatings additives. Over the last 5 years, the company’s revenue has grown at a yearly rate of 15.23%, higher than the industry average of 6.55%, and its market share increased from 1.82% to 2.63%. Additionally, the company’s net income has grown at a yearly rate of 24.77%, also industry avg of -1.03%, in the same period. 

Astrazeneca Pharma India Ltd

AstraZeneca India, founded in 1979 and based in Bengaluru, Karnataka, operates under its subsidiary AstraZeneca Pharma India Limited (AZPIL). AZPIL manages the company’s manufacturing, sales, and marketing activities in India. As a listed entity, it is part of AstraZeneca Plc, UK. Over the last 5 years, the company’s revenue has grown at a yearly rate of 12.58%, higher than the industry average of 9.21%, and its market share increased from 0.33% to 0.36%. 

Sumitomo Chemical India Ltd

Sumitomo Chemical India Pvt Ltd is a manufacturer of inorganic chemicals located in Mumbai, India. Over the last five years, the company’s net income has grown at a yearly rate of 17.39%, higher than the industry average of 4.13%. Its current ratio has been 260.1, also higher than the industry average of 186.03. Additionally, the company’s debt-to-equity ratio has been 1.93%, lower than the industry average of 36.15% in the same period. 

Marico Ltd

Marico Ltd stands as a major player in India’s consumer products sector, specialising in beauty and wellness. In the fiscal year 2022-23, Marico achieved a turnover of approximately USD 1.2 billion, driven by sales in India and selected markets across Asia and Africa. Over the last 5 years, the company’s revenue has grown at a yearly rate of 6.91%, higher than the industry average of 6.64%, and its market share increased from 19.46% to 21.54%. Additionally, the company’s current ratio has been 165.84, higher than the industry average of 146.74 in the same period. 

Vardhman Textiles Ltd

Vardhman Textiles Limited is an integrated textile manufacturer that manufactures cotton yarn, synthetic yarn, woven fabric, sewing thread, acrylic fibre, tow, and garments. Over the last 5 years, the company’s revenue has grown at a yearly rate of 6.77%, higher than the industry average of 4.41%, and its market share increased from 5.02% to 5.95%. 

Doms Industries Ltd

DOMS Industries Limited (DIL), based in Valsad, Gujarat, is an Indian manufacturer of stationery and art materials. Its product range includes wooden pencils, coloured and polymer pencils, mathematical and drawing instruments, wax crayons, oil pastels, stationery kits, office supplies, and craft materials. DOMS operates under the multinational Italian company Fila Group. The company’s PE ratio is 91.48, its return on equity (ROE) is 31.24%, and its net profit margin is 9.9%.

What is Intraday Trading?

Intraday trading involves buying and selling stocks within the same trading day. This approach means that all trades are completed before the market closes, avoiding overnight exposure. The goal is to profit from short-term price movements and market volatility. 

Traders executing intraday trades rely on technical analysis, charts, and real-time data to make decisions. By not holding positions overnight, they reduce the risk associated with after-hours market shifts. Intraday trading has become more accessible to individuals due to advancements in digital platforms and internet connectivity.

While it was once seen as a domain for professionals, anyone can now engage in intraday trading. New traders should understand the basics and be aware of the risks involved before getting started.

How to Invest in Intraday Stocks in India?

Here is how one can invest in intraday stocks in India:

1. Open an intraday 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 stocks for intraday 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 various intraday stocks. 

3. Place a ‘Buy’ order on the intraday stocks of your choice. 
Note: Investors should conduct thorough research into their investments and consult a financial advisor before investing.

How is Intraday Trading Different from Regular Trading?

Here’s a table outlining the differences between intraday trading and regular (delivery) trading:

Aspect	Intraday Trading	Regular (Delivery) Trading
Position Holding	Positions are squared off on the same day.	Stocks are held for a longer period.
Settlement	No transfer of ownership; shares are bought and sold within the same day.	Shares are credited to your Demat Account and can be sold later.
Ownership	No ownership of shares as they are bought and sold within a day.	Full ownership of shares until sold.
Investment Horizon	Short-term; returns are realised within a single day.	Long-term; can hold shares for weeks, months, or years.

Intraday trading focuses on quick transactions with no transfer of ownership, while regular trading involves holding shares for an extended period, with ownership transferred to the investor.

Objectives of Intraday Trading

Here are some of the key objectives of intraday trading:

• Capitalising on Short-Term Price Movements: Investors participating in intraday trading intend to take advantage of small price changes within a trading day by buying low and selling high. The most promising intraday stocks are those with notable price volatility and high liquidity.
• Mitigating Overnight Risks: Another objective of intraday traders is to close all positions before the market ends to avoid risks linked to after-hours news or events that could impact stock prices. This approach helps minimise exposure to potential overnight risks.
• Exploiting Market Volatility: Intraday trading benefits from market volatility. Traders can look for stocks that show significant price movements throughout the day, as they can offer opportunities for profitable trades.
• Focusing on High Liquidity: Intraday traders can opt for highly liquid stocks to ensure quick buying and selling with minimal price impact. High liquidity supports efficient trade execution and reduces slippage.
• Applying Technical Analysis: These traders usually use technical analysis tools and charts to guide their trading decisions. They can evaluate price patterns, volume, and other indicators to pinpoint potential entry and exit points for trades.

Intraday trading demands a strong grasp of market dynamics, quick decision-making, and a disciplined approach. Staying informed about market news and trends is essential, as these factors can greatly influence intraday stock performance.

Features of Intraday Trading

Here are a few key features of intraday trading:

• Same-Day Transactions: In intraday trading, all trades must be completed within the same trading day. You buy and sell stocks within the market hours, and any position that remains open at the end of the day will be automatically closed at the market price. This ensures that you do not carry any positions overnight, focusing instead on capitalising on daily price movements.
• No Stock Ownership: Unlike long-term investing, intraday trading does not involve owning the stocks you trade. The goal is not to build a portfolio but to profit from short-term price fluctuations. As a result, you do not gain ownership rights or dividends associated with the stocks you buy and sell within the day.
• Use of Leverage: Intraday trading often involves leveraging, which means borrowing funds from your broker to increase your buying power. This allows you to control a larger position with a smaller amount of your own capital. While leveraging can amplify potential returns, it also comes with increased risk and specific terms and conditions that must be understood before using it.
• Necessity for Research and Strategy: Successful intraday trading requires comprehensive research and preparation. This includes analysing stock charts using various indicators, developing a personalised trading strategy, and setting stop-loss orders to limit potential losses. Being well-informed and strategically prepared can help in making timely and informed trading decisions.
• Specific Order Placement: When trading intraday, it is crucial to specify that your order is for intraday trading on online platforms. This designation ensures that your position will be closed by the end of the trading day, preventing any unintended overnight exposure. Properly marking orders for intraday trading can help in managing positions effectively within the trading hours.

Who can Participate in Intraday Trading?

Intraday trading is best suited for experienced investors who understand market dynamics, manage risks well, and make quick decisions. It involves trading stocks based on their daily price fluctuations and requires constant market monitoring and technical analysis.

Beginners might find intraday trading too risky and complex. It can be better to start with longer-term investment strategies before intraday trading. Successful intraday trading demands significant time and focus, which can be challenging if you have a full-time job.

While intraday trading can offer high returns, it also comes with substantial risks. Those who excel in technical analysis and can interpret market trends and indicators effectively are likely to do well.

Tools for Technical Analysis of Intraday Stocks

Investors can consider these tools for technical analysis of today’s 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 intraday stocks, 
• Relative Strength Index (RSI): This measures the strength of recent price movements, indicating the magnitude of recent changes.
• Volume Analysis: This 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.

Investors seeking a dependable platform for technical analysis can consider the Tickertape Stocks Screener. It offers over 200 filters, such as technical indicators and custom options. Each stock has a dedicated page with detailed insights and analysis, which can help investors determine if it aligns with their investment goals.

Strategies for Intraday Trading

Intraday trading encompasses various strategies, each requiring unique skills and approaches. Here’s an overview of some key strategies that may help in selecting the best intraday stocks to buy today:

• Momentum Trading: This strategy involves buying stocks showing strong trends, either upwards or downwards. Traders aim to profit from the stock’s continued movement in the same direction, often focusing on stocks with high trading volumes and significant price shifts.
• Scalping: Scalping is about making numerous trades throughout the day to benefit from small price changes. This requires quick decision-making and sharp focus, often aided by technical indicators and charts.
• Breakout Trading: Breakout trading targets stocks that move beyond previous support or resistance levels. This movement may signal the start of a new trend. Traders use technical analysis to spot potential breakouts and plan their trades accordingly.
• Range Trading: This strategy involves trading stocks within a defined price range, buying at the lower end (support) and selling at the higher end (resistance). Traders rely on technical indicators to identify these levels and base their trades on the assumption that the stock will continue within this range.
• Moving Average Crossover: This technique uses the crossing of two moving averages to signal potential entry or exit points. While it may not pinpoint exact tops and bottoms, it helps identify emerging trends. It works best in volatile or trending markets and provides specific trade triggers.
• Reversal Trading: Also known as Pull Back Trading, this strategy bets on a change in the stock’s price direction. Traders look for stocks at extreme highs or lows, anticipating a reversal. They use technical indicators like moving averages (MA) and MACD to spot potential reversals.
• Gap and Go Trading: This strategy focuses on stocks that open significantly higher or lower than their previous closing prices. Traders use pre-market scanners to find such stocks and trade based on the gaps caused by news or other factors.
• Bull Flag Trading: The bull flag pattern indicates a continuation of an uptrend. After a strong price movement, the price consolidates within parallel trend lines before breaking out to continue the uptrend.
• Breakout Trading: This involves entering trades when the price moves beyond established support or resistance levels. Breakouts often lead to strong market movements and require precise timing for entry and exit.
• Pivot Point Strategy: Pivot points help identify critical support and resistance levels, useful in both range-bound and breakout trading. They indicate where market sentiment might shift, aiding in setting profit targets and stop-loss orders.
• CFD Trading: Contracts for Difference (CFDs) allow speculation on various global markets without owning the underlying asset. They offer leverage, meaning you can control a large position with a small deposit. While leverage can amplify profits, it also increases risk.

Common Mistakes to Avoid While Intraday Trading

Here are a few common mistakes to avoid while participating in intraday trading and selecting the best intraday stocks today:

• Lack of Proper Analysis: Effective intraday trading demands thorough research and an understanding of market dynamics and technical indicators. Neglecting these can lead to impulsive trades and losses.
• Excessive Leverage: While leverage can boost potential gains, it also increases risk. Using too much leverage can lead to significant losses if trades go against you.
• Ignoring Stop-Loss Orders: Stop-loss orders help limit losses by automatically selling a stock when it falls to a certain price. Failing to use them can make you vulnerable to larger losses.
• Lack of Discipline and Emotional Control: The fast-paced nature of intraday trading can lead to emotional decision-making. Maintaining discipline and controlling emotions is crucial to avoiding irrational choices.
• Inadequate Risk Management: A clear risk management strategy, including proper position sizing and diversification, can be important for intraday trading. Without it, you may be risking substantial losses.
• Trading Illiquid Stocks: It can help to focus on stocks with high liquidity for easier transactions at desired prices during intraday trading. Illiquid stocks can cause slippage, leading to unexpected losses.
• Overtrading: Excessive trading, driven by greed or fear, can result in higher transaction costs and poor decisions. Investors interested in intraday trading should ideally prioritise well-considered trades over frequent trading.
• Lack of a Trading Plan: A detailed trading plan covering entry and exit points, risk management, and profit targets is important for intraday trading. Trading without a plan can lead to erratic results.
• Ignoring Risk Management: Failing to set stop-loss orders and over-leveraging can quickly deplete your trading capital. Strict risk management rules are essential to safeguard your investments during intraday trading.
• Failure to Adapt to Market Conditions: Markets are dynamic. Strategies that worked previously may not fit current conditions. It can be beneficial to adjust your strategies to align with market changes during intraday trading.
• Lack of Technical Knowledge: Solid technical analysis skills are fundamental. Entering trades without understanding technical indicators and chart patterns can result in poor decisions.
• Inadequate Exit Strategy: Knowing when and how to exit a trade is important for intraday trading. Intraday traders can establish clear exit strategies to manage risk and maximise returns. This can also help avoid emotional decisions under pressure.
• Insufficient Pre-Market Preparation: Preparing before the market opens, including analysing potential trades and reviewing news, can be important during intraday trading. Inadequate preparation can lead to missed opportunities and avoidable losses.

Avoiding these mistakes can help you navigate intraday trading more effectively and improve your overall trading performance.

Benefits of Intraday Trading

Here are a few potential benefits of investing in intraday stocks:

• Lower Risk: In intraday trading, securities are bought and sold within the same day, reducing the risk of significant losses compared to standard trading, where investments are held for longer periods. This short-term approach limits exposure to market downturns.
• 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 taxes and fees are included in the brokerage fee.
• Higher Potential Returns: Intraday trading, when executed well, can yield significant returns, especially in a rising market. Traders can also profit through short selling if market conditions are unfavourable.
• Liquidity: Funds invested in intraday trades 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.

Risk Management During Intraday Trading

Effective risk management is essential for minimising losses in intraday trading. Key strategies for risk management during intraday trading include:

• Stop Losses: Stop losses can help limit potential losses by automatically closing a position when a stock hits a predetermined price. This avoids emotional decisions and keeps you aligned with your risk management plan.
• Position Sizing: Position sizing involves deciding how much capital to risk per trade. By allocating a set percentage of your trading capital to each trade, you can control your overall risk and prevent major losses. 
• Diversification: Diversification spreads your investments across various stocks to reduce risk. This approach prevents significant losses from a single stock’s poor performance and helps create a more balanced portfolio.
• Staying Informed: Staying updated on market news, economic indicators, and company announcements is crucial. This knowledge helps you anticipate market movements and adjust your trading strategy. 
• Support and Resistance Levels: Identifying support (price levels where an asset tends not to fall below) and resistance (levels where it tends not to rise above) helps in setting stop losses and planning trades. For instance, buying near support or selling near resistance can guide entry and exit points.

Factors to Consider When Investing in Intraday Stocks

Here are a few factors to consider when investing in intraday stocks in India:

• Liquidity: High liquidity is an important factor for intraday trading. It ensures you can quickly enter and exit trades without affecting the stock’s price significantly. Stocks with high trading volumes offer smoother transactions and tighter bid-ask spreads, which can enhance trading efficiency.
• Volatility: Stocks with noticeable price swings can be advantageous for intraday traders. Volatility measures how much a stock’s price fluctuates. Higher volatility often means more opportunities for short-term gains. Investors can choose stocks with healthy volatility to maximise potential profits.
• News and Events: Stay updated on market news and events like earnings reports, economic data, and geopolitical developments. These can drive significant price movements and present trading opportunities. Monitoring news helps you spot stocks with increased activity and potential for intraday trades.
• Technical Indicators: Technical analysis is valuable for intraday trading. Tools like moving averages, the Relative Strength Index (RSI), and Bollinger Bands can reveal trends, momentum, and volatility. Using these indicators can improve your ability to identify promising trading opportunities.

To Wrap It Up…

Success in intraday trading hinges on choosing the right stocks and applying effective strategies. Key factors to consider include liquidity, volatility, news, and technical indicators. Utilising technical analysis tools and risk management techniques can help navigate the challenges of intraday trading. A well-defined strategy and the ability to adapt to changing market conditions are essential for successful day trading. Although trading does not guarantee success, adhering to these principles can significantly boost your chances.

Frequently Asked Questions About the Best Intraday Stocks