How to Select Stocks for Intraday Trading in India
Not every stock is suitable for intraday trading. Poor stock selection is one of the top reasons traders lose money intraday. Use these six criteria to build a high-quality watchlist every morning.
The 6 Criteria for a Good Intraday Stock
| Criterion | Why It Matters | How to Check |
|---|---|---|
| High Liquidity | Easy to enter/exit without slippage | Average daily volume above 1 million shares |
| High Volatility | Enough price movement to profit from | ATR (Average True Range) above 1.5% of price |
| Clear Trend | Don’t fight the broader market direction | Check daily and hourly chart trend |
| Upcoming Catalyst | News and results drive intraday moves | Economic calendar, corporate announcements |
| High Beta | Moves more than the market when Nifty moves | Beta above 1 preferred for intraday |
| No Corporate Action Today | Splits and dividends distort price patterns | Check NSE/BSE corporate announcements |
Best Stock Categories for Intraday
- Nifty 50 large-caps for stability and tight spreads (HDFC Bank, Reliance, TCS)
- Bank Nifty constituents for maximum volatility (HDFC Bank, ICICI Bank, Axis Bank, Kotak)
- Sector momentum plays: stocks in the sector that is leading the market that day
- Stocks with fresh breakouts on daily charts: already in strong momentum
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Stocks to AVOID for Intraday
- Illiquid small-cap and mid-cap stocks: wide bid-ask spread causes losses on entry/exit
- Stocks under F&O ban: reduced liquidity and heightened volatility
- Stocks with earnings results due during market hours: unpredictable price swings
- Penny stocks (below Rs.10): easily manipulated, prone to circuit breakers
- Stocks with promoter pledging above 50%: can gap down suddenly
How to Build Your Intraday Watchlist
- The previous evening, scan for stocks with high delivery volume and breakout patterns on daily charts
- Add stocks that are in news: results, order wins, management guidance, FII buying
- Check the sector rotation: which sector is showing strength/weakness?
- Limit watchlist to 5 to 8 stocks maximum, more is not better
- Pre-mark key levels: previous day high/low, round numbers, moving average levels
Pre-Market Checklist (9:00–9:15 AM)
- Check global markets: SGX Nifty, Dow Jones futures, Asian markets
- Read overnight news: Budget, RBI announcements, FII/DII data
- Review your watchlist stocks for any overnight news or gap opening
- Note the Nifty and BankNifty opening level and direction
- Check India VIX: above 20 means higher volatility day
- Set mental stop-loss levels before the market opens
Using Lemonn’s Screener for Intraday Stock Selection
Lemonn’s screener lets you filter stocks by volume surge, price momentum, and technical signals. Set filters for: market cap above Rs.10,000 crore, average volume above 1 million shares, and price above 200 DMA. This generates a solid starting watchlist of large-cap, liquid, trending stocks.
FAQs
How many stocks should I trade per day?
Beginners should focus on 1 to 2 stocks per day maximum. Spreading attention across many stocks leads to missed signals and over-trading.
Should I follow stock tips for intraday?
No. Tip-based trading is the fastest way to lose money. By the time a tip reaches you, the operator has already taken position and is selling to you.
Is Nifty 50 good for intraday?
Excellent choice. High liquidity, tight spreads, and moves are relatively predictable compared to individual stocks.
Can I use the same stocks every day?
You can have a core watchlist of 10 to 15 stocks but refresh it based on current momentum and sector rotation.What volume is considered high for intraday? For large-caps: 1 million+ shares per day. On the intraday chart, look for 2x or more average volume on the breakout candle to confirm the move.
Disclaimer
The stocks mentioned in this article are not recommendations. Please conduct your own research and due diligence before investing. Investment in securities market are subject to market risks, read all the related documents carefully before investing. Please read the Risk Disclosure documents carefully before investing in Equity Shares, Derivatives, Mutual fund, and/or other instruments traded on the Stock Exchanges. As investments are subject to market risks and price fluctuation risk, there is no assurance or guarantee that the investment objectives shall be achieved. Lemonn (Formerly known as NU Investors Technologies Pvt. Ltd) do not guarantee any assured returns on any investments. Past performance of securities/instruments is not indicative of their future performance.
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