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How to Select Stocks for Intraday: 10 Tips to Pick Best Stocks


Intraday trading can give you the highest ROI in a single day, but at the same, it is one of the riskiest ways to lose your money. But if lay cautiously, following the day trading rules and regulations, you can earn a good amount of money from this bet.

For a successful intraday strategy, you have to apply the technical indicators on the right stocks that are suitable for day trading. Hence, selecting the best stocks for intraday trading is the most important factor to make intraday trading profitable.

Also Read: What is Intraday Trading: Is it Profitable, How to Learn& Earn Money

How to Pick Stocks for Day Trading?

Selecting the stocks for intraday trading, various rules and criteria make a stock suitable for day trading. Half of your intraday strategy becomes successful if you choose the right stock. Find here the rules for Picking Stocks for day trading.

10 Rules to Choose Best Stocks for Intraday:

#1 Pick the Highly Liquid Stocks

A stock having low liquidity or not traded regularly or in sufficient volume is completely not suitable for intraday trading. In day trading, when you buy and sell the stocks you need quick sellers and buyers to accept your offer. You can pick stocks of Blue-chip companies or from the F&O (derivatives) segments that are highly liquid stocks for intraday trading.

#2 Choose Medium Volatile Stocks

Picking the very less or highly volatile stocks for day trading can be risky. Hence, for intraday trading, select the stock having market value fluctuations not greater than 3% to stay away from any kind of unexpected fluctuations in the market. Just like stocks, Volatility of main Index is also fluctuates, as per the market conditions, that also should be watched.

Also Read: VIX India: How it Works, Calculated & Used for Share Trading

#3 Stocks with the Reasonable Beta

The stock correlated with the index reasonably should be considered for intraday trading. A stock having neither too high nor too low beta should be avoided for day trading. A reasonable beta shows there is a strong correlation between benchmark indices and stocks. And it means any kind of sizeable movement in the index also tends to oscillate the price of the stock.

#4 Select Stocks with High Volume

As we already said, low-volatility stocks should be avoided from intraday trading. Similarly, the stock having a high volume in trade is suitable for day trading. The high demand and supply in the stock with the significant amount of average daily volume help to find quick buyers and sellers in the market, making your trade highly liquid.

#5 Pic the Stocks Market Trend

The market is affected by various factors like economic conditions, political situation, social factors and various macro factors that make market moves. While picking the stocks keep in mind, whether it is correlated with these market conditions or not. And the best way to know the market trend, is use the heat map that shows top gainers & losers at a glance.

Also Read: What is Heat Map in Stock Market: How Heatmap Works & Used?

#6 Stocks as per the Sector Trend

Just macro factors, there is a sectorial-based trend in the market when most of the stocks in that sector move in the same direction. For intraday trading, before you pick the stock also check the trend of the sector, and make your position accordingly.

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    #7 Pick Stocks Included in Derivatives

    Stocks in the derivatives (futures & Options) are also most suitable for intraday trading. The stocks in the derivatives segment are moderately volatile and liquidity is high. Stock in the F&O segment is included only when they are fundamentally sound, having high liquidity with a large volume of trade daily makes this best for intraday trading.

    Also Read: Derivatives: Types, Participants & Basic Terminology in Market

    #8 Pick the Strong Stock in Uptrend

    Strong stocks always move faster than indices in uptrend market conditions. So pick the strong stock in an uptrend. Strong and weak stocks react quickly as per their behaviour, while in a downtrend market trend, every time pick the weak stock.

    #9 Can Pick the News-based Stocks

    Many stocks are highly sensitive towards the news, like company-related news, industry or sector news and economy-based news. These stocks are suitable for intraday trading as these stocks usually, react to positive or negative developments reported in news or media. However, being highly sensitive towards the news can be a risky bet. So, be a good trader and check if any related news comes or is likely to come and pick the stock that can react accordingly.

    Also Read: How To Be A Good Investor Or Trader in 2023

    #10 Do Some Research on Stock

    Picking the stock blindly or purely on a technical analysis basis is also not advisable for intraday trading. Hence, before you select any stock for intraday trading, do some research and also check the fundamental position of aspects of the company. At micro levels, if the company is not strong, this can have a strong impact on stock prices.


    Selecting the right stock is one of the most crucial factors in intraday trading. But if you follow the above-mentioned rules you can pick some good stocks for day trading. Moreover, there are various other factors like analyzing the real time charts and applying the technical indicators as per the trading strategy that is also important to make your day trading profitable.

    Also Read: How to Do Intraday Trading: Best Stocks, Charts & Strategies

    You can open a trading and demat account with Moneysukh and have recommendations for intraday trading with daily tips to pick the stocks for day trading. Her team of experts such as technical analysts and fundamental analysts analyze such stocks and recommend the best one suitable for intraday or having the highest potential to give the best returns.

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