How to Select Stocks for Intraday Trading

Method 1: Riding the Pre-Opening Wave

Before the normal market hours start at 9:15 a.m., there exists a pre-open market session between 9:00 a.m. and 9:15 a.m. It is divided into 3 parts:
- Order Entry Period (9:00 a.m. to 9:08 a.m.)
- Order Matching Period (9:08 a.m. to 9:12 a.m.)
- Buffer Period (9:12 a.m. to 9:15 a.m.)

This session is very useful since it sets the opening price of stocks and incorporates any big news/events that occurred after the market closed the previous day.

By looking at the top gainers and losers before the market opens, you can know the potential movers for the day.

Steps to shortlist top gainers & top losers

1) After the Order Entry Period ends at 9:08 a.m., get a list of the top gainers and losers from NSE or TradingView.

> On NSE, you can find the live list of top gainers and losers here. You’ll find an option to filter the list by index, and we suggest looking for stocks in the ‘NIFTY50’ category.
> You can also use TradingView’s stock scanner tool to look for top gainers and losers within a particular index. Remember to sort that list by the ‘Change %’ attribute. The filters can look something like this:

2) You can now add these stocks to your watchlist for the day and scan for buy/sell signals depending on whether they are top gainers/top losers.

Now let’s look at the next two methods.

Method 2: ‘Gapping’ Up or Down

Another method for finding intraday trading stocks is by looking at gap-up and gap-down stocks.

What are gap-up and gap-down stocks?

A stock is said to have opened with a gap-up if its opening price is higher than the previous day’s closing price. On the other hand, it is said to have opened with a gap-down if its opening price is lower than the previous day’s low price.

Gap-ups signify positive momentum and make good candidates for long bets while gap-downs signify negative momentum and make good candidates for short bets.

Finding gap-up and gap-down stocks

We created a free scanner for finding such stocks in the NSE200 universe, using the following filters:

You can now add these stocks to your watchlist for the day and scan for buy/sell signals. By the way, you can learn several profitable trading strategies from India’s top experts on Upsurge.club.

Ask us anything!

Have any doubts about filtering stocks? Or want to learn something else? Hit us up!

Method 3: Clear Candlestick Signals

The next method for shortlisting intraday stocks involves filtering stocks that have shown clear positive or negative momentum since the time the market opened.

We can scan for them using a simple candlestick filter. Again, we have a free scanner for finding such stocks.

Learn to select the right stocks for profitable trading in Ms. Jyoti Budhia’s comprehensive Technical Analysis Course. Use ‘STOCK10‘ for a 10% discount & get the course for just ₹674.