Top Stocks for Tomorrow Using the BTST Strategy
In India, the BTST (Buy Today Sell Tomorrow) facility is provided by most of the stock broking agencies, including Zerodha. Here, traders can buy a stock today and sell it tomorrow before getting the delivery of the shares. This method specifically helps in identifying the top stocks for tomorrow.
We’ve covered the basic details of this particular order in our previous content. Today, we’ve come up with the same topic but with another perspective.
👉 In this article, we will explain how to find top stocks for tomorrow using the BTST strategy, so that traders can identify high-probability opportunities before the next trading session.
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 part of the T+1 settlement cycle.
In India, generally, the T+1 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 Tuesday evening (Monday = T, Tuesday = T+1 day). Hence, if a trader buys a stock on Monday and sells it on T+1 day, it refers to BTST.
👉 This concept is widely used by traders to identify top stocks for tomorrow, as it focuses on capturing overnight price movement.
How to Find Top Stocks for Tomorrow (BTST Method)
Now, the question is how we can find stocks which can give profit by the BTST process?
1. Unusual Volume
Unusual volume in the last market hour gives a strong signal for BTST trades and helps identify potential top stocks for tomorrow.
Here, as an example, I attached a real-time stock screenshot with unusual volume below:
I have taken the example of Tech Mahindra (as of 5th Feb 2019). On that trading day, around 3:15 PM, a sudden hike was seen.
Notice carefully that on the very next day, the particular stock opens from a higher level compared to the previous closing.
👉 Therefore, if a trader enters during the unusual volume phase and exits the next morning, they can capture quick profits.
2. Perfect “U” Shape Pattern
A perfect “U” shape pattern also conveys a strong BTST signal and can help identify top stocks for tomorrow.
A real-time example is given below:
Here, I’ve taken Bajaj Finserv as an example. As you can see, a perfect “U” shape pattern has emerged here.
👉 Traders can enter just before the completion of the pattern and exit the next day for potential gains.
3. Use a Readymade List of Top Stocks for Tomorrow
Finding stocks manually can be time-consuming.
👉 On our website, we provide a daily updated list of top stocks for tomorrow using the BTST strategy.
On StockManiacs.net, we have a dedicated page where we publish BTST stocks every day.
You just need to:
- Buy the stocks just before market close
- Sell them after the next day’s market open
👉 This saves time and helps you focus on execution rather than research.
FAQs on Top Stocks for Tomorrow (BTST)
The best way to find a good BTST stock is by researching and analyzing its fundamental and technical indicators. Look at company performance, sector performance, historical trends as well as current market sentiment to select stocks that are expected to bring positive returns on your investment.
Any stocks from the NSE or BSE fall under BTST trading. You will need to check with your brokerage firm for more details depending on the options they offer.
To buy shares in BTCT you should place an after-market order by entering a short/sell position for intraday trading. Confirm transaction details and place an order with your broker within 5 minutes of market closing time which differs depending upon the exchange.
The leading indicators of success are momentum, candlestick patterns, trend analysis tools like moving averages, etc, volume analysis tools such as support & resistance levels, etc, RSI index signals along with any other topology chart patterns signals from machine learning algorithms or fundamentals like Dividend Yield ratio and so on.
Conclusion
In conclusion, finding top stocks for tomorrow becomes easier when you understand the BTST strategy and apply the right techniques.
It’s important to consider factors such as volume, liquidity, and price action when selecting stocks.
Doing your research and keeping track of market movements can help you stay ahead.
👉 Finally, you can also rely on our readymade BTST stock list to identify high-probability trades quickly and efficiently.
