Best Stocks for Intraday Trading now in India 2024

In the below article, we will cover,

• What is Intraday trading?
• Factors to Consider While Picking Best Stocks for Intraday Trading
• List of Best Intraday Stocks to Buy now in India
• Methods to select stocks for intraday trading
• A detailed table with various parameters for Best Intraday Stocks to buy

What is Intraday trading?

Intraday trading means a trader is buying and selling shares or other trading instruments on the same day to benefit from the stock price movement during the day.

In short, a trader closes his open trades before the closing of the trading session. He does not carry any overnight risk that can affect his profits.

There has been a sharp surge in intraday trading volumes in recent years due to rising number of demat accounts. The trading costs have reduced drastically as discount brokers charge only nominal fee compared to traditional brokers.

Intraday trading got a booster during the Covid-19 lockdowns as well. People who were restricted to their homes picked up day trading as a source for generating income.

Intraday trading is possible in any segment whether it is cash, futures and options (F&O),  commodity or  currency derivatives. One can also  take leveraged positions in stocks that are not available in F&O segment.

Even though intraday trading eliminates overnight risk, there are other risks such as sudden news during trading hours, illiquidity in the instrument, and fluctuating volatility of the instruments. Other factors such as trading plan, money management, and risk management also affect a traders’ profitability in the long term.

Trading is a stream where profits and losses affect human psychology. A trader’s decision-making ability is highly impacted by his state of mind. High optimism or overconfidence due to large profits or long winning streaks can lead to taking oversized positions. He might take big risk or hold losing positions for a longer time in the hope of breaking even.

Similarly, recent losses or streak of losses can lead to taking undersized positions despite the right trading setup. He might even  cut profit-making positions early. Hence, it is very important to trade based on a trading plan and not trade based on emotional bias and gut feelings.

Factors to Consider While Picking Best Stocks for Intraday Trading

There are various things to keep in mind while determining the  best stocks for intraday trading.

• Trader’s criteria

Traders must first decide the risk they are willing to take per trade. They should also limit the maximum number of open positions. Managing multiple trades can become quite complex as long and short trades would be open in different stocks.

• Corporate event 

If trades have been taken on some technical setup, it is prudent to check if there is any corporate event scheduled on the same stock. This checkup should be done on a routine basis. Such events bring both challenges and opportunities with them. Irrespective of the  outcome, it is good to remain informed of any scheduled events.

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• Volatility and Liquidity

Volatility and liquidity are also very critical for intraday trading. High volatility means large price movements during the day that translates to more trading opportunities. Low volatility means fewer trading opportunities. The volatility should not come at the cost of liquidity as liquidity is crucial for entry and exits during the day.

Traders should avoid highly volatile and thinly traded stocks. There are times when traders are stuck on one side of the trade. They cannot exit due to illiquidity or circuit limits.

Sometimes the spread between the bid and ask prices is also wide enough which affects trading costs. This occasionally happens in thinly traded penny stocks as well as thinly traded index and stock options.

Volatility is attributed to the behavior of stocks. The pattern of volatility should not be seen in the context of a particular day or week, rather stocks that have a history of volatile trading and are highly traded should be selected as trading candidates. One such list of stocks is mentioned below.

The list has been prepared by extensively analysing the volatility and liquidity of top intraday stocks on NSE and BSE given the recent history. However, volatility is varying in nature thus the stocks should not be considered as the ultimate list as their volatilities and liquidity can keep changing over a period of time.

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You can watch this insightful video on how to pick stocks for intraday trading especially in the futures and options (F&O) segment.

List of Best Intraday Stocks to Buy now in India

Methods to select stocks for intraday trading

• IndusInd Bank

• Tech Mahindra

• Lupin

• Tata Motors

• State Bank of India

• DLF

• JINDAL STEEL & POWER

• BHARTI AIRTEL

• AXIS BANK

• HAVELLS INDIA LTD

Volatility and liquidity should be primarily at the top of a trader’s mind while selecting stocks for intraday trading. However, other factors like  market cycles, stocks in the news, and stocks with technical trade setups can be included in the list and actively tracked especially when they are trading at day’s high or day’s low.

One can use indicators like ATR, standard deviations to prepare a list of best stocks for intraday trading. One can use it over a period of time say in the last 50 or 100 days. Whereas for liquidity; average turnover of the last 100 days can be used to determine top liquid stocks. Stocks that appear at the top of both liquidity and volatility lists should then be selected for the trading universe.

Nifty and Bank Nifty indices are the highest traded instruments for intraday trading as institutions and public track these indices. One important thing to notice in the above-given list is that we have excluded top market cap stocks like Reliance, HDFC, HDFC Bank, ITC, Infosys, and TCS. These stocks are highly liquid but they are not highly volatile due to their size and stability in their business. One more thing to notice in the above list, many stocks are from the banking and NBFC sector which are highly volatile sectors and are largely traded.

Brief details about each company from the watchlist table will give you an idea of what kind of stocks should be selected for intraday trading.

• IndusInd Bank

IndusInd Bank is a leading Indian private sector bank that provides a wide range of banking and financial services. It was established in 1994 and is headquartered in Mumbai, Maharashtra, India. The bank operates through a network of branches and ATMs across the country, serving individual customers, small and medium-sized enterprises (SMEs), and corporate clients.

IndusInd Bank has a market capitalization of approximately 1,05,101 crore. The promoter group holds around 15.09% of the total shares, while foreign institutional investors (FIIs) have a significant stake of 38.4%. Mutual funds own about 19.91% of the shares, with the remainder held by the public and other institutions. The stock's beta is 1.2, indicating a slightly higher volatility compared to the broader market. The 20-day average trading volume is around 20.3 lakh shares.

• Tech Mahindra

Tech Mahindra offers a wide range of IT services and solutions to clients across industries such as telecommunications, healthcare, banking and financial services, manufacturing, and retail. The company specializes in digital transformation, consulting, and business process outsourcing (BPO) services.

Tech Mahindra boasts a market capitalization of Rs. 1,47,334 crore. The promoter group maintains a 35.22% stake in the company, while the remaining 64.78% is distributed among foreign institutional investors (FIIs), mutual funds, the public, and other institutional holders. The stock exhibits a beta of 1.06, suggesting a volatility slightly higher than the market average. Furthermore, the 20-day average trading volume for Tech Mahindra is recorded at 23.95 lakh shares.

• LUPIN

Lupin is an innovation-led transnational pharmaceutical company headquartered in Mumbai. Lupin develops and commercializes a wide range of branded and generic formulations, biotechnology products, and APIs in over 100 markets in the U.S., India, South Africa, and across the Asia Pacific (APAC), Latin America (LATAM), Europe, and Middle East regions.

Lupin has a market capitalization of approximately Rs. 96,367 crore. The promoter group holds around 46.83% of the total shares, while the remaining 53.17% are held by foreign institutional investors (FIIs), mutual funds, the public, and other institutions. The stock's beta is approximately 0.98. Additionally, the 20-day average trading volume for Lupin stands at about 14.85 lakh shares.

• TATA MOTORS 

Tata Motors Group is a leading global automobile manufacturer. Part of the illustrious multi-national conglomerate, the Tata group, it offers a wide and diverse portfolio of cars, sports utility vehicles, trucks, buses and defence vehicles to the world. It has operations in India, the UK, South Korea, South Africa, China, Brazil, Austria and Slovakia through a strong global network of subsidiaries, associate companies and Joint Ventures (JVs), including Jaguar Land Rover. 

Tata Motors has a market capitalization of 3,92,149 crore. The promoter group holds about 46.41% of the company's total shares. The remaining 53.59% is distributed among foreign institutional investors (FIIs), mutual funds, and other public and institutional stakeholders. The stock has a beta of 1.25, indicating a higher level of volatility compared to the market. Additionally, the 20-day average trading volume for Tata Motors is around 49.3 lakh shares.

• State Bank of India

As a full-service bank, SBIN offers a wide range of financial products and services to its customers, including personal and corporate banking, loans, deposits, credit cards, wealth management, insurance, and investment services. The bank operates through a vast network of branches and ATMs across India and has a significant presence in international markets as well.

The company has a market capitalization of 7,35,556 crores in which the stock is moderately valued with a beta of 1.12, indicating a slightly higher volatility than the broader market. The promoter group retains 57.54% of the total shares, while foreign institutional investors (FIIs) hold 11.12%. Mutual funds own about 11.16% of the shares, and the remaining 20.18% is with  domestic institutions and retail investors. The average trading volume over the past 20 days is approximately 50.76 lakh shares

• DLF

DLF has been involved in the construction and development of various landmark projects across major cities in India, including luxury residential complexes, office spaces, shopping malls, hotels, and townships. The company has a diverse portfolio that caters to different segments of the market, ranging from affordable housing to high-end luxury properties.

DLF has a market capitalization of 2,05,649 crores. The promoter group holds 74.08% in the company while 25.92% is held by FII, insurance companies, and the public. The stock has beta of 1.54. The 20-day average volume of the stock is 44.92 lac shares.

• JINDALSTEL

Jindal Steel & Power Ltd is one of the India's leading steel producers with significant presence in sectors like mining and power generation. The group has global presence through subsidiaries. The company offers a wide range of steel products which include plates & coils, wire rod & TMT rebar, track rails and structural steel products such as beams and columns, channels, angles, etc.

It has a market capitalization of approximately 93,476 crore. The promoter group holds around 60.5% of the total shares. The remaining 39.5% is held by FIIs, mutual funds, public investors, and other institutions. The stock has a beta of 1.23, indicating a higher level of volatility compared to the broader market. The 20-day average trading volume stands at around 14.6 lakh shares.

• BHARTIARTL

Bharti Airtel Ltd is one of the world’s leading providers of telecommunication services with presence in 18 countries representing India, Sri Lanka, 14 countries in Africa. The Company’s diversified service range includes mobile, voice and data solutions, using 2G, 3G and 4G & 5G technologies. It provides telecom services under wireless and fixed line technology. 

Bharti Airtel has a market capitalisation of 8,75,328 crore. The promoter group holds about 53.17% of the total shares, while 46.83% are held by foreign institutional investors (FIIs), domestic institutions, mutual funds, and the public. Specifically, FIIs hold 24.62%, mutual funds hold 11.01%, and other domestic institutions and retail investors together hold the remaining shares. The stock has a beta of 0.95, indicating slightly lower volatility compared to the market. The 20-day average trading volume is around 50.26 lakh shares.

• DLF

DLF has been involved in the construction and development of various landmark projects across major cities in India, including luxury residential complexes, office spaces, shopping malls, hotels, and townships. The company has a diverse portfolio that caters to different segments of the market, ranging from affordable housing to high-end luxury properties.

DLF has a market capitalization of Rs 117478 crores. The promoter group holds 74.95% in the company while 25.05% is held by FII, insurance companies, and the public. The stock has beta of 1.2. The 20-day average volume of the stock is 35.57 lac shares.

• AXISBANK

Axis Bank Limited is a private sector bank. It has the third-largest network of branches among private sector banks and an international presence through branches in DIFC (Dubai) and Singapore along with representative offices in Abu Dhabi, Sharjah, Dhaka and Dubai and an offshore banking unit in GIFT City.

Axis Bank has a market capitalization of 3,53,656 crores. The promoter group holds around 7.92% of the total shares, while Foreign Institutional Investors (FIIs) and Domestic Institutional Investors (DIIs) own about 52.49% and 24.28% respectively, with the remaining 15.31% held by others, including the public. The stock has a beta of 1.1, indicating slightly higher volatility compared to the market. The 20-day average volume for Axis Bank is approximately 11.73 lakh shares.

• Havells India Ltd

Havells India Ltd is a prominent Indian electrical and power distribution equipment manufacturer. The company is headquartered in Noida, India, and it is one of the country's largest electrical equipment companies. Havells Group, which has a diverse portfolio of businesses. It enjoys enviable market dominance across a wide spectrum of products, including Industrial & Domestic Circuit Protection Devices, Cables & Wires, Fans, Home Appliances, Air Conditioners, Electric Water Heaters, Commercial and Industrial Applications, etc.

 It has market cap of 1,12,425 Cr in which the promoter group holds 59.41% shares while the remaining 40.59% stake is held by FIIs, mutual funds, institutions, and the public. The stock has beta of 0.64. The 20-day average volume is 10.46 lac shares.

Here’s a quick video from our team on how you can select the Best Intraday Stocks:

A detailed table with various parameters for the Best Intraday Stocks to buy:

Our Collection of  Best Stocks to Buy

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