Today we will not only tell you how to select the right stock for intraday trading but also about the 5 Best Stocks For IntraDay Trading.
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What Is Intraday Trading
Purchasing and selling stocks on the same trading day is known as intraday trading. Day trading is another name for intraday trading.
Throughout the day, share values are constantly moving, and intraday traders aim to profit from these price changes by purchasing and selling shares on the same trading day.
Before the market closes on the same day, stock purchases and sales are referred to as intraday trading. Your broker may square off your position or turn it into a delivery trade if you don’t do this.
Whether a person is an expert trader or a novice, this type of trading is always advantageous since the market’s indications and trends will correctly lead them.
How Choose The Right Stock For Intra Day Trading
Traders must initially select how much risk they are ready to accept for each deal. The maximum number of available positions ought to be restricted as well.
As there would be open long and short contracts in many equities, managing numerous trades might get fairly complicated.
Liquidity and Volatility:
For intraday trading, volatility and liquidity are also essential. High volatility entails significant daily price swings, which results in additional trading possibilities. There are fewer trading chances when volatility is low. Since liquidity is essential for daytime entrance and exit, volatility shouldn’t come at the expense of it.
Highly erratic and lightly traded equities should be avoided by traders. Traders can occasionally become stale on one side of the deal. Due to circuit limitations or illiquidity, they are unable to depart.
Sometimes the difference between the ask and bid prices is so great that it has an impact on trading expenses. This sporadically occurs in lightly traded index and stock options as well as thinly traded penny stocks.
Stock market behaviour is thought to be a cause of volatility. Stocks with a history of turbulent trading and high volume should be chosen as trading candidates rather than viewing the pattern of volatility in the context of a certain day or week. The list of stocks below is one example.
The list was created after a thorough analysis of the recent volatility and liquidity of the top intraday equities on the NSE and BSE. The stocks shouldn’t be regarded as the definitive list, though, as volatility is variable in nature and may change over time, along with a stock’s liquidity.
5 Best Stocks For IntraDay Trading in 2022
1. TATA MOTORS
Stocks For IntraDay Trading: Jamsetji Tata formed the $100 billion Tata group in 1868, which includes Tata Motors. The business is one of the biggest automakers in the world. By providing cutting-edge mobility solutions that support clients’ objectives, the firm is “Connecting aspirations.
” With the launch of cutting-edge powertrains and electric solutions packaged for power performances and user comfort at the lowest life-cycle costs, the firm, India’s largest automaker, continues to take the lead in defining the Indian commercial vehicle environment.
Impact Design serves as the foundation for the company’s new passenger cars and utility vehicles, which combine performance, driveability, and connectivity in a superior way.
Key Financial Parameters
|Return on Equity %||29.9||25.8||23.1||19.4||14.5||7.4||-11.2||-16.5||-8.6||-23.9||-27.6|
|Op. Profit Mgn %||13.3||14.3||14.9||13.6||12.5||10||8||7.7||11.7||8.4||9|
|Net Profit Mgn %||5.6||5.8||5.4||4.6||3.2||1.2||-2.9||-3.5||-1.9||-4.2||-4.1|
|Debt to Equity||1.4||0.9||1.3||0.9||1.4||0.9||1.8||1.9||2.5||3.1||2.2|
|Working Cap Days||108||106||100||97||106||121||133||150||154||141||170|
|Cash Conv. Cycle||-21||-24||-25||-24||-18||-15||-14||-20||-31||-23||0|
Stocks For IntraDay Trading: Tata Motors’ core competency is world-class manufacturing. The company’s facilities make sure that every stage of the manufacturing process, from design to manufacture to assembly, adheres to the highest standards of quality.
The business’s quest for excellence permeates every aspect of its operations. The manufacturing of outstanding automobiles is ensured by the enthusiastic engineering and quality skills of the company to provide its clients with the finest possible driving experience.
This has caused the demand for its goods to increase quickly on a worldwide scale.
|Value Creation Index||0.3||0.4||0.2||0.1||-0.2||-0.5||-1.2||-1.3||-1.0||NA||–|
|YoY Gr. Rt. %||–||23.3%||13%||3.8%||-1.2%||8.1%||3.6%||-13.5%||-4.3%||11.5%||–|
|YoY Gr. Rt. %||–||25.5%||5.7%||-10.6%||-24.3%||-42.7%||-252.6%||NA||NA||NA||–|
|Adj Net Profit||10,500||13,303||14,060||13,118||9,927||5,685||-8,672||-10,153||-5,109||-11,902||-11,441|
|Cash Flow from Ops.||22,163||36,151||35,531||37,900||30,199||23,857||18,891||26,633||29,001||14,283||–|
|Debt/CF from Ops.||2.4||1.7||2.1||1.8||2.6||3.7||5.6||4.5||4.7||9.8||–|
2. BAJAJ FINANCE
Stocks For IntraDay Trading: A deposit-taking non-banking financial company (NBFC-D) registered with the Reserve Bank of India is Bajaj Finance (BFL) (RBI). It belongs to Bajaj Finserv as a subsidiary.
The business of lending and accepting deposits is one that the corporation is involved in. The organisation has a sizable presence in both urban and rural India and has a diverse loan portfolio that includes lending to retail, SMEs, and commercial customers.
It provides its customers with a variety of financial services products and takes public and corporate deposits.
Analysis of Financial Track Record
|Operating Income (₹ Cr.)||3,092||4,032||5,382||7,294||9,963||12,653||17,386||23,823||23,550||27,895||27,895|
|YoY Gr. Rt. %||–||30.4%||33.5%||35.5%||36.6%||27%||37.4%||37%||-1.2%||18.5%||–|
|Adj EPS (₹ )||11.9||14.5||18||23.9||33.6||43.2||67.4||81.4||65.8||105.3||104.9|
|YoY Gr. Rt. %||–||21%||24.3%||33%||40.6%||28.7%||56.1%||20.6%||-19.2%||60.1%||–|
|BVPS (₹ )||67.7||80.2||96||136.8||175.6||273.6||336.8||526.7||592.4||690.5||688.1|
|YoY Gr. Rt. %||–||18.6%||19.7%||42.5%||28.4%||55.8%||23.1%||56.4%||12.5%||16.6%||–|
|Net Profit/Total Funds (%)||3.9||3.3||3||3.1||3.2||3.4||4.1||4||2.9||4.2||0|
Stocks For IntraDay Trading: The business has used both conventional logistic regression models and a variety of Machine Learning (ML) models. Additionally, it is making significant investments in artificial intelligence (AI) for propensity management and new acquisition.
Modern technologies provide decision engines the ability to process data in real time. These also make it possible for distinctive consumer propositions like “get now” and “straight through processing” to work continuously towards providing their customers with a more seamless and frictionless experience.
BFL is mindful of customers’ privacy when doing this and makes sure that they have given their permission before receiving any cross-sell offers.
Key Financial Ratios
|Net NPA to Net Advances (%)||0.2||0.3||0.5||0.3||0.4||0.4||0.6||0.7||0.8||0||–|
|Capital Adequacy Ratio (%)||22||19.1||18||19.5||20.3||24.7||20.7||25||28.3||0||–|
|Net Profit Margin (%)||19.1||17.8||16.7||17.5||18.4||19.6||22.4||20.5||16.8||22.8||22.8|
|Return on Equity (%)||22.1||19.6||20.4||21.1||21.7||19.6||22.1||19.1||11.8||16.4||15.2|
3. JINDAL STEEL & POWER
Stocks For IntraDay Trading: Jindal Steel & Electricity Ltd. (JSPL), headed by Mr. Naveen Jindal, the illustrious Shri O.P. Jindal’s youngest son, manufactures affordable, effective steel and power through backward and forward integration.
The commercial operations of JSPL are spread over many states in India, where it runs some of the country’s most sophisticated steel production and power generation facilities.
|Value Creation Index||0.3||-0.1||-0.5||-0.7||-1.1||-0.9||-0.8||-0.8||-0.7||-0.0||–|
|YoY Gr. Rt. %||–||8.8%||-2.6%||0.4%||-5.1%||14.6%||30.1%||43.8%||-6.2%||27%||–|
|YoY Gr. Rt. %||–||-18.6%||-40.9%||-85.8%||-1181.5%||NA||NA||NA||NA||NA||–|
|Adj Net Profit||4,052||3,299||1,907||271||-2,939||-1,993||-897||-642||-74.6||4,703||5,753|
|Cash Flow from Ops.||3,922||3,522||4,580||1,182||4,333||6,850||7,724||9,027||8,814||11,961||–|
|Debt/CF from Ops.||4.4||7||7.9||38.7||10.8||6.7||5.6||4.4||4.2||2.5||–|
Stocks For IntraDay Trading: The company’s installed finished steel capacity is judiciously distributed across wire rod mills, rail and universal beam mills, plate mills, bar mills, and plate mills.
A leading player in the infrastructure, mining, power, and steel industries, Jindal Steel & Power Limited (JSPL) is a major industrial force.
The firm works to improve India’s industrial base by supporting infrastructure expansion, using sustainable development strategies, and promoting equitable growth. In the places where it works, it makes use of its resources to enhance the infrastructure, health, education, water, sanitation, environment, and so forth.
Key Financial Parameters
|Return on Equity %||25.2||16.8||8.7||1.2||-11||-6.4||-3||-2.1||-0.2||14.7||17.1|
|Op. Profit Mgn %||39||34||29.9||29.9||18.5||22.6||24.2||21.2||21.4||32.8||30.4|
|Net Profit Mgn %||22.5||16.7||9.8||0.5||-16.7||-10.7||-4.1||-3.6||-1||11.4||11.3|
|Debt to Equity||0.9||1.2||1.6||2.2||1.4||1.5||1.4||1.2||1.2||0.9||0.2|
|Working Cap Days||205||219||220||215||238||222||199||132||141||101||97|
|Cash Conv. Cycle||38||44||48||49||44||29||29||17||9||1||0|
4. INDUSIND BANK
Stocks For IntraDay Trading: The Indus Valley Civilization, which is regarded as one of the best historical examples of a fusion of innovation with ethical business and trade practises, served as inspiration for the name “IndusInd” Bank, which Srichand P Hinduja gave the institution in 1994.
The bank has expanded continuously and rapidly over the years, propelled by a passion for providing its clients with financial services that meet the best industry standards.
IndusInd Bank Limited was established in 1994 in accordance with the Companies Act of 1956, and the Reserve Bank of India (RBI) has granted it a licence to conduct business as a commercial bank in accordance with the Banking Regulation Act of 1949.
Analysis of Financial Track Record
|Net Interest Income (₹ Cr.)||1,704||2,233||2,891||3,420||4,517||6,063||7,497||8,846||12,059||13,528||15,001|
|YoY Gr. Rt. %||–||31%||29.5%||18.3%||32.1%||34.2%||23.7%||18%||36.3%||12.2%||–|
|YoY Gr. Rt. %||–||31%||21.5%||20.7%||23.9%||22.5%||18.6%||26.7%||28%||-0.5%||–|
|Adj EPS (₹ )||17.2||20.3||26.8||33.9||38.4||48||60.1||54.8||63.7||36.7||59.5|
|YoY Gr. Rt. %||–||18.2%||32%||26.4%||13.4%||24.8%||25.3%||-8.8%||16.3%||-42.4%||–|
|BVPS (₹ )||96.5||141.7||164.3||193.4||290.8||338.7||390.9||437.2||486||556.6||611.4|
|YoY Gr. Rt. %||–||46.9%||16%||17.7%||50.4%||16.5%||15.4%||11.8%||11.2%||14.5%||–|
|Net Profit/Total Funds (%)||1.6||1.6||1.8||1.8||1.8||1.8||1.8||1.3||1.5||0.9||1|
|Net NPA to Net Advances (%)||0.3||0.3||0.3||0.3||0.4||0.4||0.5||1.2||0.9||0.7||0.6|
Stocks For IntraDay Trading: IndusInd Bank is a national bank with a broad financial presence, multiple branches, and a large client base at different distribution points.
With “Sustainability” at its core, the bank offers a variety of goods and services to both individuals and businesses, including microfinance, personal loans, loans for both personal and commercial cars, credit cards, and loans for small and medium-sized enterprises (SMEs).
Additionally, the bank is a favoured banking partner for a number of public sector organisations, PSUs, and significant corporations.
Key Financial Ratios
|Interest Earned / Total Income||84.12||83.67||81.36||79.18||78.26||77.55||78.44||79.77||80.55||81.56||80.6|
|Return on Equity (%)||19.3||17.8||17.6||19||16.6||15.3||16.5||13.3||14.7||7.4||8.9|
5. VODAFONE IDEA
Stocks For IntraDay Trading: A public limited company, Vodafone Idea (formerly Idea Cellular Limited), was established on March 14, 1995, in accordance with the Indian Companies Act. Aditya Birla Group and Vodafone Group have partnered to create Vodafone Idea.
It is the top telecom service provider in India. On 2G, 3G, and 4G platforms, the company offers voice and data services throughout India.
|Value Creation Index||-0.5||-0.5||-0.3||-0.2||-0.4||-0.7||-1.1||-1.6||-3.0||NA||–|
|YoY Gr. Rt. %||–||15%||18.4%||19.1%||13.9%||-1%||-20.5%||31.2%||21.2%||-6.7%||–|
|YoY Gr. Rt. %||–||33.3%||97.2%||43.2%||-4%||-114.9%||NA||NA||NA||NA||–|
|Adj Net Profit||724||968||1,907||2,961||2,843||-423||-4,259||-15,593||-51,263||-31,182||-28,232|
|Cash Flow from Ops.||3,818||6,297||8,219||10,418||10,949||10,476||5,332||5,348||7,328||15,640||–|
|Debt/CF from Ops.||3.5||2.2||2.5||2.6||3.7||5.3||10.9||23.6||15.7||11.5||–|
Stocks For IntraDay Trading: The firm is dedicated to providing wonderful customer experiences and contributing to the creation of a genuinely “Digital India” by enabling millions of individuals to connect and forge a brighter future with the enormous spectrum portfolio to meet the rising demand for data and voice.
The company is building infrastructure to roll out newer, smarter technologies, preparing retail and business clients for the future with cutting-edge services that are easily available through a variety of digital channels and have a significant physical presence.
In India, the Company is listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).
Key Financial Parameters
|Return on Equity %||5.7||7.1||12.4||15||12.2||-1.8||-16.4||-35.9||-156.3||193.4||53.9|
|Op. Profit Mgn %||25.9||26.6||31.3||34.3||33.5||28.8||21.4||11.1||32.7||40.3||41.7|
|Net Profit Mgn %||3.7||4.3||7.2||9.4||6.7||-2.4||-16.2||-42.6||-114.8||-74.9||-73.3|
|Debt to Equity||1||1||1.3||1.2||1.7||2.2||2.1||2.1||19.4||-4.7||–|
|Working Cap Days||69||80||71||68||58||54||82||167||254||298||148|
|Cash Conv. Cycle||-47||-30||-32||-31||-28||-28||-32||-43||-58||-72||0|
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Investing in stocks is risky. Please consult a professional advisor before investing in the stock markets. The author and Greynium Information Technologies Pvt Ltd, would not be responsible for losses incurred. Markets over the last few weeks have exhibited tremendous volatility and hence caution is advised.