Intraday Trading - Stock Selection

In Intraday Trading, Stocks screening has to be done on Daily basis

Following Categories of Stocks can be considered for Intraday Trading

1.High Beta Sector stocks

High Beta sectors are those who are Highly volatile in Nifty movement. Some of the sectors are -

A. Banking

B. Infrastructure

C. Automobile

D. Metal

E. Realty

These sectors’’stocks give good returns when Nifty is in strong trend (Uptrend/Downtrend) however these stocks should be avoided in Sideways Market

2.High Volume Stocks

In any of Trading platform/website you can see stocks ‘Most Active by Volume’; You can trade in the stock if the volume is higher on that day.

Volume is an important aspect in Price Movement depicted as Market Pressure, Higher the volume higher the movement

(Source - Investing.com)

The Bar Chart shows the Volume of SBI on 09th June 2020 in Daily chart, As on date the volume is higher than average(line in the bar indicates daily average )Hence, The stock will show a movement

3.Stocks/ Sectors in News

News is the another important factor causes price movement; News can be -

1.Govt/ RBI policy change

2. Enforcement of new law

3. Company’s Financial Results

4.Global Market Movement

5.Sector specific news

6.Any other news impacting the Economy, Sector etc.

(Fake News/ Rumors are always ready to put you at risk in live market )


Prathamesh 

(12 June 2020)

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