How to Select Stocks for Intraday One Day Before

Welcome to the world of intraday trading, where money moves fast and emotions run faster. It’s not like long-term investing, where people wait patiently for years to see returns. Intraday traders are like Formula 1 drivers, fast, nimble, and always looking for the next big move.

Intraday trading means making quick decisions and taking advantage of short-term price movements. But the real question is, “How do you select stocks for intraday trading?” Half the battle is won if you choose the right stock. If you pick a bad one, no strategy can save you.

This article will show you how to choose stocks for intraday, either a day before, using the one-minute chart, or more.

Key Things to Consider in Intraday Stock Selection

Choosing the right stock for intraday trading depends on liquidity, volatility, volume, and technical analysis. These factors determine how easily you can enter a trade and make a profit as quickly as possible.

Look for Liquidity:

Think of it like selling a used phone. If there are many buyers you will sell it quickly and get a fair price. However, if no one is interested, you will either have to wait or sell at a loss. The same logic applies to stocks. 

A liquid stock has enough buyers and sellers, allowing you to enter and exit trades without any price fluctuations. Stocks like Reliance, HDFC Bank, Infosys, and TCS are good choices as they trade in high volumes daily.

Spot Volatility:

If a stock hardly moves, there is no point in trading it. But if it moves a lot, it can be unpredictable. Your goal as a good trader is to find stocks that move enough to create profit opportunities.

You can look for stocks that meet the following criteria:

• have a daily price increase of at least 1-2%

• They are in the news due to earnings reports or market trends

• belong to sectors showing strong momentum (like IT, banking, or pharma)

Use Technical Analysis:

Quick decision-making is essential in intraday trading, and that’s where technical analysis comes in. It helps you identify the right entry and exit points by analysing market behaviour, price patterns, and movements,  instead of relying on speculation.

Read Price Action:

Observing the movement of a stock price on a chart is known as price action. Traders use reversal patterns and charts to predict the next move, rather than relying on news or opinions.. 

Mark Support and Resistance:

Traders may determine where a stock is likely to stall or reverse by using support and resistance levels.

• Support: The price at which a stock may begin to rise after stopping its decline.

• Resistance: The price at which a stock stops growing and may begin to decline is known as resistance.

A stock may rise if it breaks resistance with significant volume. It may drop considerably lower if it goes below support. These levels are used by traders to determine whether to purchase or sell.

Follow the Trend:

Following the trend is always better than trading randomly. Trends typically fall into three categories:

• Uptrend: The stock continues to make higher highs and higher lows, indicating that it is a good buy.

• Downtrend: The stock continues to make lower highs and lower lows, making it a strong stock to short sell.

• Sideways trend: The stock moves within a narrow range without a clear direction; it's usually best to wait in such cases. 

Trading with the trend improves your chances of success compared to trying to predict reversals.

How to Find Stocks for Intraday Trading

Finding the right stock for intraday trading is like picking the best players for a cricket match. You don’t just choose randomly, you look at form, past performance, and conditions. In trading, stocks with momentum, volume, and news backing them are your best picks. Here's how to find stock for intraday:

Look at the Top Gainers and Losers List

The NSE website provides you with a list of the stocks that moved the most in the previous session, if they are up (gainers) or down (losers). 

• If a stock is a top gainer with heavy volume, it could go even higher.

• If a stock is a top loser with heavy selling pressure, it could go even lower.

This provides you with a quick list of intraday stocks without wasting time.

Track News-Based Stock and Sector Trends

News can change the direction of a stock instantly. Positive earnings, especially when supported by favorable government policies or strong sectoral growth, are likely to push the stock higher. On the other hand, poor results or negative headlines can drag it down.

Things to look out for:

• Company earnings announcements

• Government policies and RBI updates

• Sector-specific news from industries like IT, banking, pharma, etc.

We make it easy for you to track news through our app and Rupeezy blogs. This helps you quickly find stocks that are currently in the news. No need to chase multiple sources. Just open Rupeezy to get the latest updates.

Watch Market Opening and Gap-Up/Gap-Down Stocks

The first 15-30 minutes of the market can tell you a lot. Stocks that open higher (gap-up) or lower (gap-down) than their previous close usually have strong momentum.

• Gap-up stocks with strong buying interest may move up.

• Gap-down stocks may move up or fall depending on volume and trend.

Observing early market moves helps you enter trades at the right time.

How to Find Breakout Stocks for Intraday

Finding breakout stocks is like spotting the traffic signal turn green before everyone else. It gives you the chance to make the first move and get ahead smoothly.

But if you move too early, you might run into a red light (a false breakout), and if you're too late, the opportunity may have already passed. So, how to find breakout stocks for intraday? Let’s understand this.

Look for Breakout Patterns

Breakouts occur when a stock suddenly breaks through a resistance level with strong volume. But they don’t come out of the blue; stocks often form patterns before breaking out. Some common ones are:

• Flags and pennants – Imagine a cricket player celebrating with a flag after scoring a century. This pattern shows a short pause before the stock moves further up.

• Triangles (ascending and descending) – Stocks move in a tight range before breaking out. Think of it like a cat ready to pounce. It stays down, focused, and then suddenly jumps in!

• Head & Shoulders – This one is easy to remember: If it forms at the top, it’s a downtrend signal (reversal breakout). If it forms at the bottom, it’s a bullish breakout (upward trend reversal).

Confirm the Breakout Before You Jump In

Breakouts are sneaky. Sometimes they trick traders into entering, only to reverse (false breakout). So, before taking a trade:

• Wait for a retest – A strong breakout stock often comes back to test its breakout level before moving further up. If it holds steady, it’s a good entry.

• Check for high volume – A real breakout is accompanied by strong volume. If the stock moves without volume, it’s like a car without fuel – it won’t go far!

Avoid Fakeouts (False Breakouts)

Have you ever seen a footballer fake a kick and the goalkeeper dive in the wrong direction? False breakouts work the same way. The stock breaks through resistance but quickly falls back, leaving traders stranded.

To avoid this:

• Check volume: A real breakout will have above-average volume.

• Wait for the candles to close: don’t rush when the stock breaks through resistance. If it holds for a few candles, the breakout is real.

• Use stop-losses wisely:  if the breakout fails, get out quickly. Don’t wait around hoping for a miracle – they rarely happen in the stock market!

How to Select Stocks for Intraday Trading One Day Before

Picking the right stocks a day in advance can give you an edge in intraday trading. Instead of scrambling for ideas early in the morning, you'll already have a plan in place. Here is how to select stock for intraday trading:

Check the Market Trend of the Previous Day

See how the market moved yesterday. Was it moving up, down, or sideways? If a stock has risen strongly or fallen sharply, it may continue the same momentum the next day as well.

Keep an eye on:

• Stocks that saw big price movements.

• Sectors that performed well (like IT, banking, or pharma).

• Stocks that closed near their highs or lows, as they might extend the same trend

Identify Stocks with Strong Momentum

Momentum stocks are those that are already moving in a clear direction. You would not want to trade stocks that are stuck in a small range.

Keep an eye on:

• Stocks with high trading volumes.

• Breakouts from important price levels (such as resistance or support).

• News-driven stocks (earnings, company announcements, or sector news).

These stocks are more likely to make big moves, making them ideal for intraday trading.

Watch Pre-Market Trends and Global Market Trends

Global markets can impact the flow of Indian stocks, especially if a major event happens overnight.

• US markets: If strong, Indian markets may open positively.

• Asian markets: In this regard, they offer some early indications about how the market is likely to open.

• Pre-market data: Pre-market active stocks can make large movements throughout the day. 

By analyzing these factors, you can shortlist stocks before the market opens and be ready to take action.

How to Select Intraday Stock in 1 Minute

Short on time? No problem. Quickly picking intraday stocks is like ordering fast food; you don't have to think too much, just follow a simple checklist.

Use a Stock Screener

Instead of scrolling through hundreds of stocks, use a stock screener to find the best stocks in seconds. Here are the things you have to look for:

• Top Gainers and Losers
  These stocks are already showing strong movement, either upward or downward, which means momentum is in play, and that’s a key ingredient for intraday trades.

• High Volume Stocks
  Look for stocks with unusually high trading volumes. More volume means better liquidity, tighter spreads, and smoother entries and exits during trades.

• Breakout Stocks
  If a stock is crossing a major resistance or support level with volume, it could continue trending in that direction, which is ideal for short-term trading setups.

Set Alerts and Save Time

Who has time to sit and stare at charts all day? Set alerts for key levels to notify you when a stock is ready for action.

• Use Rupeezy's Track News segment to catch quick changes in the market because news moves stocks before indicators do!

• Want to set alerts? In the Rupeezy trading app, go to Tools ? Alerts, and set price or breakout alerts so you never miss an opportunity!

How to Select F&O Stocks for Intraday?

Trading futures and options stocks intraday is like choosing the right bike for a race. You don't want a slow, heavy scooter; you want a fast, high-performance machine that responds quickly. Similarly, not all F&O stocks are good for intraday; you need stocks with speed and momentum.

Pick Liquid and High-Beta Stocks

A stock with no liquidity is like a parked vehicle in a race; it goes nowhere because there's no active buying or selling

To select F&O stocks for intraday, you need:

• High liquidity: Look for stocks with consistently high daily trading volumes and narrow bid-ask spreads. This allows you to enter and exit positions quickly, which is essential for fast-paced intraday trades.

• High beta stocks: These stocks move more than the market. When Nifty moves 1%, high-beta stocks can move 2 to 3 percent, offering better trading opportunities.

Here are some examples of high-beta F&O stocks in Indian Markets: Tata Motors, Adani Enterprises, Bajaj Finance, Reliance, and HDFC Bank. These stocks move fast and provide some good intraday opportunities. 

Use Open Interest (OI) and Put-Call Ratio (PCR)

Now, let's get slightly pro-level. If you want to trade F&O stocks like a boss, you need to look at the Open Interest (OI) and Put-Call Ratio (PCR).

Open Interest (OI) – Indicates how many F&O contracts are still open in the market. If OI is increasing, then more traders are joining in, and a major move is on its way.

Put-Call Ratio (PCR) – If PCR is extremely high, then more puts (short positions) are being traded, and a reversal may be imminent. If PCR is low, the market is bullish.

Consider OI as a stadium of cricket If more people are entering (increasing OI), then there will be much action in the match (stock). If the crowd begins to exit (decreasing OI), then the thrill is dwindling.

Why Trade F&O Stocks for Intraday?

Futures and Options (F&O) stocks are usually more liquid (lots of buyers and sellers), which means entry and exit are easier. They also have higher volatility, which means faster price movements, which is good for quick trades.

But be careful! Just because F&O stocks move fast, it does not mean they always go in your favour. It's like riding a sportbike, you can reach your destination quickly, or you can also slip if you don't handle it properly.

Manage Your Trading Psychology to Get the Best Results

Now you know how to choose stocks for intraday, but trading isn’t only about stock selection, charts, and figures; it’s a mental game. Even if you’ve picked the best stocks, you’ll fail if you panic at small losses or get greedy after quick gains. Here are the things you have to consider:

• Manage your emotions – The market doesn't know anything about your emotions. Keep calm, stick to your plan, and never let FOMO (fear of missing out) rush you into undesirable trades.

• Follow risk management: Set your stop-loss and target levels before entering a trade. Hoping for a miraculous recovery after a stock crashes is like waiting for Wi-Fi in a no-network zone, it just doesn’t work.

• Be disciplined: Trade based on strategy, not emotion. If a trade goes wrong, treat it as a lesson, not as a gamble.

Conclusion

This article explained how to select stocks for intraday, and now you know that picking the right intraday stock is not about guessing or relying on luck. It’s about making informed decisions based on market logic and personal discipline. If your mindset isn’t right, even the best stock selection won’t help.

Stay consistent, keep learning from each trade, and remember, discipline and preparation are your biggest assets in intraday trading.

FAQs: 

Q1. How to select stocks for intraday trading?

Search for breakout stocks that are liquid, volatile, and have strong momentum. Rupeezy's Top Gainers & Losers segment in the app simplifies that.

Q2. How to find momentum stocks for intraday?

To find momentum stocks, look for a stock with high price movement and volume. Rupeezy's real-time market updates enable you to monitor momentum stocks in real time.

Q3. Can I use Rupeezy for intraday trading?

Yes! Rupeezy offers a 5x margin for intraday equity, so you can trade with more capital and maximize opportunities.

Q4. How to avoid losses in intraday trading?

To avoid losses in intraday trading, use a stop-loss, avoid emotional trading, and stay committed to your strategy.

Q5. Which stocks are best suited for intraday trading?

The best stocks for intraday trading should be liquid, volatile, and have strong momentum.