Home » Algo Trader » Buy Today Sell Tomorrow Stocks (BTST)

Buy Today Sell Tomorrow Stocks (BTST)

Traders of the stock market prefer to buy today sell tomorrow stocks. In short, we call them BTST stocks. Advantages to trade in these stocks are that these stocks can be kept for overnight positions. Also, the brokers do not charge the stock holding charges for BTST stocks. A trader can even buy these stocks just before the close of the trading hours on the previous day. And traders can even sell the stock in the first hour of the next trading day. No need to wait for all through the whole day looking at the screen, as we do in the case of intraday trading. In intraday trading, we have to wait for the target to achieve or exit from the trade if the stop-loss is hit. Otherwise, if none of them happens, we make an early exit during the trading hours.

Here is our Buy Today Sell Tomorrow Stocks list. Please check this page just before the market closes and take a position where you find BUY. Exit your long position next morning at the market open. No need to put any stop-loss as we enter market close and exit at market open.

Our Readymade Buy Today Sell Tomorrow Stocks Lists

These lists will work only on market hours on stock market days. Please remember: They may not show any signals on off-market hours or stock market holidays.

By default, the columns will be sorted by the SIGNAL column so that all the BUY signals are shown. However, it is recommended to buy only the low RSI stocks. If you want to sort by also the RSI column, then hold the Shift key and sort by the RSI() column in an ascending manner.

BTST Stock List (Nifty Small Cap 100)

BTST Stock List (All FNO)

Advantages of BTST trading

Unlike intraday trades, we take the buy the BTST call any time during the trading hour. Buy the stock from the BTST stocks list and wait. There’s no urgency to exit from the trade on the same day. We wait till the next day and exit accordingly. We wait till the target is achieved or exit if the stop loss is hit on the next trading day. Many traders don’t want to lose such advantages and grab the BTST call at the first opportunity. Traders wait for BTST calls. In this article, traders will know how to trade the BTST stocks. Also, they will come to know how to find these buy today sell tomorrow stocks.

Which of the Buy Today Sell Tomorrow Stocks to trade?

You can choose BTST stocks from any of the Nifty stocks or all FNO stocks. But I prefer the stocks from the Nifty Small Cap 100 lists of stocks. These stocks can easily make big moves overnight. Therefore a 5% or more profit is easy to achieve from overnight positions.

The New SEBI Rule for BTST

Before we make any further progress on the discussion of BTST, I must clear some misconceptions making round among traders these days. Firstly after the new SEBI rule from September 2020, people started thinking that this new rule has put some kind of bar on BTST trading. Therefore these trades are not possible now. Let me tell you precisely that all the buy today sell tomorrow trades are going on as usual. Only there are some changes in margin money compliance.

Secondly, some traders know these trades are going on. But they are not active in this segment, because they do not clearly understand the new margin money rule.

Buy Today Sell Tomorrow Stocks Margin

I, therefore, would like to clarify what the new margin money rule is. The new rule clearly mentions that after the completion of the trade, i.e. after you exit from your position, 80% of the total trading capital will be released instantly. After T+2 days, the exchange will release the remaining 20% of your trading capital. So from the third day, after your first trading day, you can again use the full trading capital. Let me clarify this with some examples.

Say, you want to trade with Rs 1 lakh in BTST. On the first day, before the market closes, you buy stocks worth Rs 1 lakh. On the next morning, you sell the stocks with some profit. So, the sell value is Rs 1 lakh + profit. The exchange will release 80% of your trading capital. So, now the trading capital becomes Rs 80000 + profit. Therefore you need to add Rs 20000 more to make it Rs 100000. And you get the blocked amount after two more days. Again you buy stocks of Rs 1 lakh before the trade closes. And you sell your stock on next morning. So on this day also exchange will block 20% of your capital. But as you get back 20% capital of the first trading day after T+2 days, the capital deficit is automatically adjusted.  To simplify, let’s present it the following way.

Example for Buy Today Sell Tomorrow Stocks Margin

Monday -> you buy stocks of Rs 1 lakh.

Tuesday ->you sell the stocks, but get Rs 80000. Exchange keeps Rs 20000 and you add Rs 20000 more. You buy stocks of Rs 1 lakh again. Hence your total capital is now Rs 120000.

Wednesday -> you sell the stocks and similarly get Rs 80000. You again top it up with Rs 20000. So your trading capital now is Rs 1 lakh and the total investment is Rs 140000. Again in late trading hours, you buy stocks worth Rs 1 lakh.

Thursday -> you sell the stocks and get Rs 80000. Exchange keeps Rs 20000. But they also release Rs 20000 they blocked on Tuesday morning. Hence now your trading capital becomes Rs 1 lakh again.

Thus, if you want to trade with Rs 1 lakh every day in the BTST segment, you need to invest Rs 140000 to keep the exchange happy. And you can trade daily with Rs 1 lakh. We did not calculate profit in it to make things simple. And I need to tell you one more good thing. After trading for some days on a trot, you will find you have already earned the extra Rs 40000 you added to keep the running capital Rs 1 lakh. Then you can withdraw the extra investment.

Which Sector is our Favourite Buy Today Sell Tomorrow Stocks

So I hope I have cleared your doubts. Now let us consider what I have in stock for you today. From our research and studies, I have found that there can be an effective formula to find highly profitable BTST stocks for trading. We will pick up stocks from Nifty Small Cap 100 only. The reason for considering these stocks is many. Usually, small-cap stocks are not considered to be very good stocks. Their profitability projection, management, cash flow, balance sheet are not always very attractive. Therefore many investors avoid them.

But that is not the case for Nifty Small Cap 100 stocks.  Because of their performance, they have come into this Nifty group of stocks. Mainly due to market capitalization they cannot compete with midcap or blue-chip large-cap companies. But they are worth investing in and very good for short-term trading. They have the ability to move easily for more than 5% in one day. So, if we trade them in BTST we might make a good profit from an overnight position. We only catch the trend.

Equity Momentum Trading Strategy

The name of this strategy is Equity Momentum Trading Strategy. It is our proprietary strategy. We have developed this strategy after a lot of research and running a lot of backtests. We found that if a stock is increasing for the last three consecutive days, there’s a high probability that it will make a gap up opening on the 4th day. So you buy the stock on the third day just before the trade closes and come out of the trade in the first hour of the next day. Sell the stock at the first good opportunity in the morning trade.

Let’s take some examples. Say the price of stock A moved from Rs 99 to Rs 100 today, Rs 101.5 tomorrow, and Rs 103.6 the day after tomorrow. So the ROC (rate of change) of Stock A becomes 1%, 1.5%, and 2.5% for three consecutive days. Hence the stock may have a gap up opening on the 4th day morning. So you buy the stock @ 103.6 near the closing time on the third day and exit from the stock the next morning, even if there is no gap up. That way you don’t lose much and mostly gain from the uptrend even if there was no gap up on the 4th day morning.

Similarly, if a stock is recovering from downward momentum and made three consecutive gains in three days, you enter the stock and sell it on the 4th day morning with a probable good profit.

The Complete Stock List

Here on this live page, we have compiled a list of BTST stocks for you. The page gets updated at regular intervals. You only need to see where you are getting the buy signal and enter the stock just before the market closes. On the next morning trade, you get out of the stock with profit. And even if there is no profit you get out.

Just to prove the efficacy of this trading system I would like to give you some backtest results. The backtest was done over a period from 01.01. 2013 to 31.12 2020. I would like to specifically mention to you what the backtest results showed.

  1. If you invested Rs 1 Lakh in BTST every day over this period in the futures and options stocks, it would have become more than Rs 18 Lakh by end of 2020.
  2. If you invested Rs 1 lakh every day in BTST in Nifty Small Cap 100 only, your investment would have become more than Rs 1 Crore 75 Lakh over this period.
  3. In the test period, we have only traded 4 stocks per day with the same capital. If we got more than 4 stocks fulfilling the criteria, we have taken those 4 stocks those having the lowest RSI reading.
  4. In case we got less than 4 stocks a day, we traded all of them with the same capital.
  5. Here is the backtest report of the Nifty Smallcap 100 stocks given below.

Conclusion and Trading Rules

In the end, I would like to specify a few things on this BTST table shown on this page. It is a live list. The prices and signals are updated live in this list and the final update will be on 03:25 PM every trading day. Therefore you may find differences in signals in the list over time. Consider only the final update. We have added stocks from the Nifty Small Cap 100 list as well as from all FNO stocks. There are two segments. The first one is on Nifty Small Cap 100 cash stocks and the second one is on F&O stocks. Both the lists are for trades in cash stocks only. This list is not meant for future or options traders. Specifically, options have different valuation parameters. Therefore we have not added any list for trade in the options segment.

A sorting option is available with a Relative Strength Index (hold down the Shift key and sort with RSI() column in ascending order). We suggest trading only the first 4 stocks with the lowest RSI values for the optimum result.