How to Do Intraday Trading in India and Earn ₹1,000 Per Day

Many new traders enter the stock market hoping to generate a steady daily income. One of the most popular ways to do this is through intraday trading.

If you’re wondering how to do intraday trading in India, the process is simple to understand but requires discipline, risk management, and the right strategy. Intraday trading involves buying and selling stocks within the same trading day to profit from short-term price movements.

Can you earn ₹1,000 per day from intraday trading? Yes, it is possible. However, it is not guaranteed. Success depends on your capital, experience, stock selection, risk management, and market conditions.

In this guide, you’ll learn everything you need to know about intraday trading in India, including legal requirements, stock selection, profitable strategies, taxes, and common mistakes to avoid.

What Is Intraday Trading?

Intraday trading refers to buying and selling a stock within the same trading session. Any position opened during the day is closed before the market closes.

For example:

• Buy 100 shares of a stock at ₹200
• Sell them later the same day at ₹210
• Profit = ₹10 per share × 100 shares = ₹1,000

The objective is to capture small price movements during market hours.

Intraday Trading vs Long-Term Investing

Feature	Intraday Trading	Long-Term Investing
Holding Period	Same day	Months or years
Goal	Short-term profit	Wealth creation
Risk Level	High	Moderate
Time Required	Daily monitoring	Minimal
Capital Turnover	High	Low

Many traders prefer intraday trading because it provides opportunities to generate profits without waiting months or years for returns.

Is Intraday Trading Legal and Safe in India?

Yes, intraday trading is completely legal in India.

It is regulated by:

• Securities and Exchange Board of India (SEBI)
• National Stock Exchange (NSE)
• Bombay Stock Exchange (BSE)

As long as you trade through a registered stockbroker and follow market regulations, intraday trading is fully legal.

Risks You Should Know Before Starting

While legal, intraday trading carries significant risks.

Capital Loss

Prices can move against your position quickly, causing losses.

Leverage Risk

Many brokers offer margin facilities that increase both profits and losses.

Emotional Trading

Fear and greed often cause traders to make poor decisions.

Overtrading

Taking too many trades can lead to unnecessary losses.

A successful trader focuses first on protecting capital and then on making profits.

How to Start Intraday Trading in India (Step-by-Step)

If you’re new to trading, follow these five steps.

Step 1: Open a Demat and Trading Account

To trade stocks in India, you need:

• Demat account
• Trading account
• Linked bank account

Choose a SEBI-registered broker that offers:

• Fast order execution
• Low brokerage charges
• Advanced charts
• Risk management tools

Opening an account typically takes less than a day.

Step 2: Fund Your Trading Account

How much money should you start with?

For beginners, a capital of:

• ₹10,000 to ₹25,000 for learning
• ₹25,000 to ₹50,000 for consistent trading

is generally sufficient.

Avoid borrowing money or using funds meant for essential expenses.

Step 3: Choose the Right Stocks

Stock selection is one of the most important parts of intraday trading.

The best intraday stocks usually have:

• High trading volume
• Good liquidity
• Daily price movement
• Strong market participation

Examples often include:

• Reliance Industries
• HDFC Bank
• ICICI Bank
• Infosys
• Tata Motors

The goal is to trade stocks that move enough to create opportunities.

Step 4: Use a Stock Heatmap to Find Opportunities

A stock heatmap provides a visual representation of market performance.

Benefits include:

• Identifying strong sectors
• Finding momentum stocks
• Spotting market leaders
• Discovering unusual activity

Many professional traders use heatmaps during the first hour of trading to identify opportunities quickly.

Step 5: Place Your Intraday Order

After selecting a stock:

1. Decide your entry price.
2. Set a stop-loss.
3. Set a profit target.
4. Place an MIS (Margin Intraday Square-Off) order.
5. Monitor the trade.

Never enter a trade without a predefined stop-loss.

Best Strategies to Earn ₹1,000 Per Day From Intraday Trading

There is no guaranteed strategy, but several proven approaches are widely used by successful traders.

1. Momentum Trading

Momentum trading focuses on stocks moving strongly in one direction.

Example

If a stock breaks above a key resistance level with high volume, traders enter expecting further upward movement.

Why It Works

• Strong buying interest
• Institutional participation
• Trending market conditions

This is one of the most popular intraday trading tips in India.

2. Breakout Trading

A breakout occurs when a stock moves beyond a significant support or resistance level.

Example

Suppose a stock repeatedly faces resistance at ₹500.

If it breaks above ₹500 with strong volume, traders may buy expecting further gains.

Advantages

• Clear entry point
• Defined stop-loss
• Good risk-to-reward ratio

3. Scalping

Scalping involves capturing very small price movements multiple times during the day.

Characteristics

• High trade frequency
• Small profit per trade
• Requires quick execution

Scalping is generally recommended for experienced traders rather than beginners.

How Much Capital Is Needed to Earn ₹1,000 Per Day?

Many beginners assume they can earn ₹1,000 daily with a small account.

In reality, profits depend on:

• Trading capital
• Risk management
• Win rate
• Market conditions

Example

If you trade with ₹50,000 and achieve a 2% gain:

₹50,000 × 2% = ₹1,000

However, achieving 2% consistently every day is difficult.

Focus on building skills first rather than chasing daily income targets.

How to Select Stocks for Intraday Trading

Learning how to choose stocks for intraday trading is critical.

Look for High Liquidity

High liquidity means:

• Easy entry and exit
• Lower slippage
• Better price execution

Focus on Volume

Stocks with heavy trading volume generally provide better opportunities.

Look for stocks trading above their average daily volume.

Trade Stocks With Volatility

Stocks should move enough to generate profits.

Extremely stable stocks often provide limited opportunities.

Follow Sector Momentum

If the banking sector is strong, focus on leading banking stocks.

If IT stocks are rallying, look for opportunities within the IT sector.

Sector trends often drive individual stock movements.

Avoid Penny Stocks

Many beginners are attracted to low-priced stocks.

However, penny stocks often suffer from:

• Low liquidity
• Price manipulation
• Wide bid-ask spreads

Stick to well-known NSE-listed companies.

Risk Management Rules Every Trader Must Follow

Even the best strategy fails without proper risk management.

Never Risk More Than 1-2% Per Trade

For a ₹50,000 account:

• 1% risk = ₹500
• 2% risk = ₹1,000

This protects your capital during losing streaks.

Always Use Stop-Loss Orders

A stop-loss automatically exits your trade if the market moves against you.

Benefits include:

• Limits losses
• Removes emotional decisions
• Preserves trading capital

Maintain Risk-to-Reward Ratio

Aim for at least:

1:2 Risk-Reward

Example:

• Risk ₹500
• Target ₹1,000

Even with a moderate win rate, this approach can be profitable.

Avoid Revenge Trading

After a loss, many traders immediately enter another trade to recover money.

This often leads to larger losses.

Follow your trading plan instead.

Common Intraday Trading Mistakes

Most beginners lose money because of avoidable mistakes.

Trading Without a Plan

Entering trades randomly rarely works.

Ignoring Stop-Loss

One bad trade can wipe out several profitable trades.

Overtrading

More trades do not necessarily mean more profits.

Quality is more important than quantity.

Following Tips Blindly

Avoid relying solely on social media or messaging groups.

Always conduct your own analysis.

Using Excessive Leverage

Leverage magnifies losses just as quickly as profits.

Use it cautiously.

Intraday Trading Taxes in India

A common question is whether intraday trading taxable in India.

The answer is yes.

How Intraday Income Is Classified

Intraday profits are treated as:

Speculative Business Income

They are not considered capital gains.

How Intraday Profits Are Taxed

Profits are:

• Added to your total income
• Taxed according to your income tax slab

The exact rate depends on your total annual income.

Can Intraday Losses Be Set Off?

Yes.

However, speculative losses can only be adjusted against speculative gains.

Unused losses may generally be carried forward according to prevailing tax rules.

Documents Required for Tax Filing

Keep records of:

• Broker statements
• Contract notes
• Profit and loss reports
• Bank statements

These documents simplify tax filing.

Can Beginners Make Money Through Intraday Trading?

Yes, beginners can make money in intraday trading.

However, successful traders focus on:

• Learning before earning
• Managing risk
• Maintaining discipline
• Following proven strategies

The goal during the first few months should be skill development rather than income generation.

Consistent profits usually come after gaining experience and refining your process.

Key Takeaways

• Intraday trading involves buying and selling stocks on the same day.
• It is fully legal and regulated in India.
• A Demat and trading account are required to start.
• High-volume and liquid stocks are best for intraday trading.
• Momentum and breakout trading are beginner-friendly strategies.
• Risk management is more important than stock selection.
• Intraday profits are taxable as speculative business income.
• Consistency matters more than chasing daily profit targets.

Frequently Asked Questions

Conclusion

Learning how to do intraday trading in India is easier than ever, but becoming consistently profitable requires patience, discipline, and proper risk management.

If your goal is to earn ₹1,000 per day from intraday trading, focus first on building a repeatable process. Choose liquid stocks, use proven strategies, follow strict stop-loss rules, and never risk money you cannot afford to lose.

The traders who survive and succeed are not the ones who chase quick profits. They are the ones who manage risk, continue learning, and stay disciplined through every market cycle.

Ready to start your trading journey? Open a Demat and trading account with Lemonn and begin exploring India’s stock markets with the right tools and resources.