Best Stocks for Intraday Trading now in India.

 Best Stocks for Intraday Trading now in India.

Methods to select stocks for intraday trading

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, 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. For preparing a list of intraday trades based on volatility, indicators like ATR, standard deviations can be used 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.

There is no doubt that Nifty and Banknifty indices are the highest traded instruments for intraday trading as these indices are tracked and traded by FIIs, DIIs hedge funds, and other institutions along with the public for hedging and speculation. One important thing to notice in the above-given list is that there are no 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.

Axis Bank

Axis Bank is the third-largest private-sector Indian bank and offers a range of financial products. The bank has its head office in Mumbai. It has 4580+ branches, a wide network of ATMs, and 10+ international offices. It sells financial services to large and mid-size companies, SME and retail businesses.It has a market capitalization of Rs. 2,33,403 Crore. As of March 2021, 13.58% shares are owned by promoters and promoter groups. The remaining 86.42% of total shares are owned by mutual funds, FIIs, banks, insurance companies, corporate bodies, and individual investors among others. The average trading range for the stock ranges from 2 to 4 percent with a daily turnover of more than 1400+ Cr. The stock has an average daily trading volume of 235+ lac shares.

Bajaj Finance

Finance Limited is one of the largest players in the burgeoning consumer finance segment in India and a pioneer in introducing interest-free EMI finance options in more than 50 categories, ranging from consumer durables to lifestyle products to groceries. Apart from consumer finance, the company also has substantial business penetration in SME, commercial, and rural lending.

 The company has a market capitalization of Rs. 3,60,000+Crore. Promoter group holds around 56.12% of the total shares while 43.60% are held by mutual funds, other institutions, and the public. The average daily range for the stock remains around 1.75% to 4% with an average daily turnover of more than 2400 Cr. Stock has an average daily trading volume of 30+ lacs.

Bandhan Bank

Bandhan Bank Ltd. is an Indian banking and financial services company headquartered in Kolkata, West Bengal. The bank’s total banking outlets as on March 31, 2019 stood at 4000. The network consists of 986 branches and 3,014 Doorstep Service Centers (DSCs). Total number of ATMs stood at 481. Bandhan Bank has a significant presence in under-penetrated East and North East India.

Bank has a market cap of Rs. 55000+ Cr. Promoter group holds around 40% of total shares while 60% are held by FII, mutual funds, and public and other institutions. The stock has an average trading range from 2.8% to 4.5% and an average daily turnover of more than 400+ Cr. Stock has an average daily trading volume of 90+ lacs.

Bharti Airtel

Bharti Airtel Limited, also known as Airtel, is an Indian global telecommunications services company based in New Delhi. It operates in 18 countries across South Asia and Africa. Airtel provides GSM, 3G, 4G LTE, 4G+ mobile services, fixed-line broadband, and voice services depending upon the country of operation. Airtel had also rolled out its VoLTE technology across all Indian telecom circles.

 It is the second-largest mobile network operator in India and the second-largest mobile network operator in the world with over 420 million subscribers. The company has a market cap of Rs. 2,93.851 Cr. The promoter group holds 55.86% of total shares and the remaining 44.14% of the total is held by FII, mutual funds, public, and others. The stock has an average daily range of 2.30% to 3.50% and an average daily turnover of more than 1100+ crores. Stock has an average daily trading volume of 200+ lac shares.

Indiabulls Housing Finance

Indiabulls Housing Finance Limited is a mortgage lender headquartered in New Delhi. It is India’s second-largest housing finance company and is regulated by the National Housing Bank. It is part of the Indiabulls group and contributes approximately 80% of the group’s turnover.

The company has a market cap of Rs. 12,500+ Cr. Promoter group holds 21.70% stake in the company and the rest 74.62% is held by FII, insurance companies, institutions, and the public. The stock has an average trading range from 4% to 6% and an average daily turnover of more than 450+ crore. Stock has an average daily trading volume of 230+ lac shares.

IndusInd Bank

IndusInd Bank Limited is an Indian new generation bank in Pune, established in 1994. The bank offers commercial, transactional, and electronic banking products and services. As of June 2020, IndusInd Bank had nearly 1700+ branches, and around 2800+ ATMs spread across different geographical locations of the country. It also has representative offices in London, Dubai, and Abu Dhabi.

The bank has a market cap of Rs. 78,000+ Cr. with the promoter group holding 16.55% shares while the rest 83.45% are held by FIIs, public, and others collectively. The stock has an average trading range from 3.5% to 5% and an average daily turnover of more than 1300+ crores. Stock has an average daily trading volume of 150+ lac shares.

Jindal Steel & Power

Jindal Steel and Power Limited (JSPL) is an Indian steel and energy company based in Hisar. With a turnover of approx. US$ 5.5 billion, JSPL is a part of about US$18 billion diversified Jindal Group conglomerate. JSPL is a leading player in steel, power, mining, oil and gas and infrastructure in India. The company produces steel and power through backward integration from its own captive coal and iron-ore mines. In terms of tonnage, it is the third-largest steel producer in India.

 The company manufactures and sells sponge iron, mild steel slabs, ferro chrome, iron ore, mild steel, structural, hot rolled plates and coils, and coal-based sponge iron. The company has a market capitalization of Rs. 40,000+ crore in which the promoter group holds 60.47% shares and 39.53% shares are held by mutual funds, FII and others. The stock has an average daily trading range from 4% to 6% and an average daily turnover of more than 280+ crores. Stock has an average daily trading volume of 100+ lacs.

RBL Bank

RBL Bank is an Indian private sector bank headquartered in Mumbai and founded in 1943. It offers services across six verticals: corporate and institutional banking, commercial banking, branch, and business banking, retail assets, development banking and financial inclusion, treasury and financial market operations.

RBL bank has a market cap of Rs. 12,000+ Crs all of which are held by mutual funds, FIIs, insurance companies, institutions, and the public. The stock has an average trading range from 3.00% to 5.00% and an average daily turnover of approx. 500+ crores. Stock has an average daily trading volume of 180+ lac shares.

Tata Motors

Tata Motors Limited is an Indian multinational automotive manufacturing company headquartered in Mumbai, Maharashtra. As India’s largest automobile company and part of the USD 113 billion Tata group, Tata Motors has operations in the UK, South Korea, Thailand, South Africa, and Indonesia through a strong global network of 76 subsidiary and associate companies, including Jaguar Land Rover in the UK and Tata Daewoo in South Korea.

 Its products include passenger cars, trucks, vans, coaches, buses, sports cars, construction equipment, and military vehicles. Tata Motors has a market capitalization of Rs 1,20,000+ crores. The promoter group holds 46.41% in the company while 53.59% is held by FII, insurance companies, and the public. The stock has an average daily trading range of 3.40% to 5.20% and an average daily turnover of more than 1300+ crores. Stock has an average daily trading volume of 1200+ lacs.

Zee Entertainment Enterprises

Zee Entertainment Enterprises Limited is the media and entertainment broadcasting company of the Essel Group. It owns a constellation of entertainment channels under the brand name of Zee. The Zee Entertainment Enterprise also owns and operates the record label of Zee Music Company and the film studio of Zee Studios. Zee Entertainment has a market cap of Rs. 20,000+ Crs in which the promoter group holds 3.99% shares while the remaining 96.01% stake is held by FIIs, mutual funds, institutions, and the public. The stock has an average trading range from 4% to 5.30% and an average turnover of more than 500+ crores. Stock has an average daily trading volume of 200+ lac shares.