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How to Find BTST Stocks from the Market?

How to Find BTST Stocks

In India, BTST (Buy Today Sell Tomorrow) facility is provided by most of the stock broking agency including Zerodha. Here, traders can buy a stock today and sell it tomorrow before getting the delivery of the shares. We’ve covered the basic detail on the particular order in our previous content. Today, we’ve come with the same topic but with an another perspective. Here, the discussion point is How to Find BTST Stocks from the market. The strategy will be described here.

The Meaning of BTST (Buy Today Sell Tomorrow)

The name suggests its meaning itself, buy a stock today and sell it tomorrow. The particular order type forms out of T+2 settlement cycle. In India, generally T+2 settlement cycle is followed. Now, let’s have a look at the illustration of the process. Suppose, a trader buys 50 shares on Monday, he will get the delivery of it on Wednesday evening (Monday=T, Tuesday=T+1 day and Wednesday=T+2 day). Hence, if a trader buy a stock on Monday, and sell it on T+1 day, it refers as BTST.

How to Find BTST Stocks from the Market?

Now, the question is how can we find stocks which can give profit by the BTST process.

Unusual Volume

Unusual volume at the last market hour gives signal of using BTST strategy. Here, as an example, I attached a real-time script below:

How to Find BTST Stocks from the Market

The script I have taken is from Techm (as on 5th Feb 20019). On that trading day, around 3.15 pm, a sudden hike has been seen. Notice carefully that on the very next day, the particular stock opens from a high position in comparison to yesterday’s closing. Therefore, if a trader enters in the unusual volume area and exit tomorrow at a high opening price, he can get a huge profit on that.

Perfect “U” Shape Pattern

A perfect “U” shape pattern also conveys BTST signal. A real-time example is given below:

How to Find BTST Stocks

Here, I’ve taken Bajaj Finsv as an example. As you can see, a perfect “U” shape pattern has been emerged here. Traders can enter before the ending of the formation of the pattern.

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