Welcome to the world of intraday trading in the stock market! If you’re new, to stock trading and eager to get started you’ve come to the place. In this guide, we will explore the art of intraday trading. More importantly how to identify the best intraday stocks to buy today under 50 rupees that are perfect for day trading. Before we delve into the specifics of stock selection let’s take a moment to grasp what intraday trading is about.
What Are Intraday Stocks?
Intraday trading, commonly known as day trading is an approach where you buy and sell stocks within the day of trading. Unlike investing methods that involve holding onto stocks for weeks or even years intraday traders aim to capitalize on short-term price movements. This means there’s potential for making profits within a day—making it an appealing option for those seeking wealth growth.
The Importance of Choosing the Right Stocks
Now that you have a basic understanding of intraday trading it’s important to highlight how critical it is to select the right stocks. Your success, in intraday trading largely hinges upon your ability to identify stocks poised for short-term price movements in the desired direction.
Choosing the stock can lead to losses, which is why it’s crucial to carefully select stocks. So what makes us specifically interested, in stocks priced below 50 rupees? Let’s dive into this aspect.
How to Create a Stock Screener on Chartink.com to Find Best Intraday Stocks to Buy Within Rs 50
Before we discuss the criteria for identifying the top intraday stocks under 50 let me introduce you to a tool – a stock screener. Chartink.com offers a ready-to-use platform that enables you to filter stocks based on parameters. Here’s how you can create your stock screener:
Visit Chartink.com: Go to chartink.com and create an account if you haven’t done so already. It’s also free of charge.
Access the Stock Screener: Once you’re logged in go to the “Screener” section.
Customize Your Screener: Set your criteria for finding intraday stocks valued under 50 rupees. You can specify factors such as price range, volume and technical indicators. Suppose here we will create a screener where the stock is trading below rupees 50, has its daily ADX reading above 30 (hence trending) and a volume reading greater than 2,00,000 per day. We will choose the stocks from the Nifty 500 segment.
Run the Screener: After defining your criteria click on “Run Screener” to view the list of stocks that meet your requirements. Here in this example, we got 7 stocks that meet our criteria.
By personalizing your screener to concentrate on stocks below 50 rupees you are already one step closer, towards identifying intraday opportunities. Now let’s move forward and comprehend the criteria for selecting intraday stocks.
Best Intraday Stocks to Buy Today Under 50 Rupees
Understanding the Selection Process
To narrow down the options and identify the intraday stocks to buy under $50 it’s important to establish criteria. Here’s what you should consider when looking for these stocks:
- Liquidity: Make sure the chosen stock has trading volume. Higher liquidity enables buying and selling without price fluctuations.
- Volatility: Intraday traders benefit from price movements so look for stocks that demonstrate volatility. This allows for profits.
- Technical Indicators: Pay attention to indicators such, as Moving Averages, Relative Strength Index (RSI) and Bollinger Bands. These tools help assess the stock’s momentum and possible reversals.
- News and Events: Stay informed about any news or events that may impact a stock’s price during the trading day. Unexpected announcements can lead to price swings.
- Risk Reward Ratio: Evaluate the risk-reward ratio for each stock. It is advisable to opt for stocks where potential rewards outweigh risks.
Now that we have established the selection criteria let’s delve into some strategies, for choosing intraday stocks.
Stock Selection Strategies
Choosing the stocks for intraday trading involves a combination of fundamental analysis. Here are some strategies you can consider:
- Breakout Trading: One strategy involves finding stocks that are breaking out of a range or pattern. For instance, if a stock has been trading within a range and suddenly breaks above a resistance level it may indicate an opportunity to go long.
- Trend Following: intraday traders follow trends. If a stock consistently moves in a downward direction you can join the trend. Ride the momentum.
- Scalping: Scalpers aim to make profits from frequent trades. They often search for stocks, with liquidity and low spreads.
- News-Based Trading: Keeping track of company news economic reports and market events can help identify stocks that are likely to experience price movements.
Let’s consider an example of UCO BanK. Imagine you’re using your Chartink.com screener and found that stock meets your criteria and in the list. You observe that in the monthly charts it has recently broken out of a consolidation pattern and the Relative Strength Index indicator suggests it’s in bullish territory. This could serve as a signal to potentially consider taking a position for an intraday trade opportunity. Check the image above for the example.
While the appeal of profits, in intraday trading is enticing it also carries risks.
To safeguard your investment it is vital to incorporate risk management strategies:
- Implement Stop Loss Orders: Before entering a trade determine the point at which you will exit if the trade starts losing. This helps prevent holding onto losing positions, in the hopes of a turnaround.
- Optimize Position Sizing: It is never advisable to invest all your capital into a trade. Instead, divide your capital into portions to limit losses.
- Evaluate Risk Reward Ratio: Assess the risk-reward ratio for each trade you consider. Ideally, the potential reward should outweigh the risk involved.
- Maintain Emotional Discipline: Avoid making trading decisions based on emotions, like fear or greed. Stick to your trading plan. Remain focused.
By implementing these risk management techniques you can minimize losses while maximizing profit opportunities.
Best Intraday Stocks vs Stocks Under 50
Distinguishing between seeking the best intraday stocks and concentrating on the stocks to buy today under 50 rupees may seem significant. In reality, these criteria can complement each other effectively.
Stocks priced under 50 rupees often exhibit volatility levels making them appealing for intraday traders. Moreover, the lower price allows traders to acquire shares using their capital potentially enhancing profits.
However, it’s crucial to keep in mind that the price alone should not be a factor when selecting stocks. While a stock priced below 50 rupees may present an opportunity, for intraday trading other factors like liquidity, technical indicators and potential driven by news should also be considered.
Most Active Shares Below Rs 50
In the realm of intraday trading, it’s important to keep an eye on shares that are highly active and fall below the 50 rupee mark. The level of market activity plays a role in influencing price movements during intraday trading. Here’s why it matters:
- Liquidity: Active shares generally offer liquidity making it easier to enter and exit positions without experiencing price slippage.
- Sensitivity to News: Active shares tend to respond to news and events providing intraday traders with opportunities for quick profits.
- Volatility: The active shares often exhibit volatility levels, which can work in favour of intraday traders aiming to capitalize on price fluctuations.
Now that we’ve discussed the importance of monitoring shares let’s delve into some tools and resources that can assist you in your journey as an intraday trader.
Tools for Finding Intraday Stocks to Buy Under Rs 50
We’ve already emphasized the significance of utilizing the Chartink.com screener as a tool to identify intraday opportunities. However, it’s worth reiterating its value. The stock screener enables you to customize your stock filtering based on your criteria giving you a targeted list of trades. This feature can save you an amount of time and effort when selecting stocks.
Other Useful Tools
Apart, from the Chartink.com screener, there are tools and resources that can enrich your intraday trading experience:
- Trading Platforms: Opt for a trading platform that offers real-time data, charting tools and efficient order execution capabilities. We recommend Zerodha Kite for your everyday analysis.
- Technical Analysis Software: Consider utilizing analysis software to conduct chart analysis and identify potential entry and exit points. Without any doubt, my favourite technical analysis software is the one and only AmiBroker. However, newcomers can also test ChartNexus, which is free to use.
- Educational Resources: Invest in expanding your knowledge by reading books enrolling in courses and following financial news sources. An informed trader is more likely to succeed.
- Community and Forums: Join trading communities and forums like TradingQNA.com where you can exchange ideas, strategies and insights with traders.
In conclusion, intraday trading can be a fulfilling pursuit. Requires an understanding of the market and a disciplined approach. By focusing on the best intraday stocks to buy today under 50 rupees you can maximize the potential of short-term trading while effectively managing risk.
Remember that success, in intraday trading comes with experience so don’t be discouraged by setbacks. Keep improving your strategies make sure to manage risks and stay informed, about the trends in the market. With perseverance and the appropriate resources, you can confidently navigate the realm of intraday trading.
Now that you have access to the Chartink.com screener and have gained insights, from this guide it’s time for you to begin your journey into intraday trading. Overall, start with steps learn from each trade experience and never cease to explore the captivating world of stock markets.