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Best High Liquidity Stocks for Intraday
List of High Liquidity Stocks for Intraday Trading Before I describe a list of liquid stocks for intraday trading you must understand why I am supposed to select liquid stocks rather than. The basic property of Intraday trading is to trade stocks that involve buying and selling of stocks in a day.Read more
List of High Liquidity Stocks for Intraday Trading
Before I describe a list of liquid stocks for intraday trading you must understand why I am supposed to select liquid stocks rather than.
The basic property of Intraday trading is to trade stocks that involve buying and selling of stocks in a day.
You are advised to profit from the price fluctuations of stocks that range from a few seconds to a few minutes.
Liquid Stocks for Intraday Trading:
The essential feature in trading is, when you purchase stock it should be available in huge volumes to trade and possess sufficient volatility.
Volatility is the degree of stock price variations and its high presence will enable you to obtain potential gains when traded.
Liquidity ensures easy buying and selling of stocks because of high trading volumes in the markets.
Be mindful, when you have decided for an intraday trading plan, for a smooth and successful buying and selling of stocks you must research for liquidity stocks.
The graph represents NIFTY 100 liquid 15 stocks and they represent 3-month performance rallies, taken on October 13, 2023. The closing NIFTY 100 liquid 15 is 5330.35.
Below are the list of 15 companies that can be traded in Intraday trading due to its liquidity feature. These fifteen stocks are as follows.
Tata Motors, IndusInd Bank, HCL tech, Maruthi Suzuki, Bajaj Finserv, Bajaj Finance, Bharti Airtel, RIL, Titan Company, Adani Ports SEZ, Tech Mahindra, Tata Steel, SBI, Adani Ent., Axis Bank.
Illustration of illiquid Stocks in Intraday:
You may recognise the day trading on a particular day to be bullish in nature. Keeping such views, you will purchase 1000 shares @INR 6.00.
You will place an order (option buy) for 1000 quantities of shares.
Over a period, you may be allotted 500 quantity at INR 6.5 and remaining 500 quantity at 7.5.
The shift in the prices is observed because you might not have found a seller at INR 6.0. However, this will have increased your purchase of shares by 16.7%. That means, there is an increment in buying price than the current market price that you opted for.
In a similar manner, you may lose more percentage when you execute a put option for the bought shares of 1000.
Important Note:
You may have understood from it that you must purchase a share that is traded in high volumes and high volatility.
See lessIncome Tax on Intraday Trading in India
Income Tax on Intraday Trading Profits Your assets are taxed based on the classification, long-term or short-term. Any asset that is held longer than a year is called a long-term asset, and when you buy and sell an asset within one year then it is termed to be a short-term asset. In intraday, you wiRead more
Income Tax on Intraday Trading Profits
Your assets are taxed based on the classification, long-term or short-term.
Any asset that is held longer than a year is called a long-term asset, and when you buy and sell an asset within one year then it is termed to be a short-term asset.
In intraday, you will buy and sell the stocks on the same day, and hence it will be accountable as business income.
Tax levied on short-term shares when sold will be 15 percent of the profit earned.
Tax on Long-term Capital Gains when sold:
When you make a profit up to ₹ 1 lakh, the profited amount shall be exempted.
If you can make a profit of more than ₹ 1 lakh, then your profited amount shall be subjected to 10 percent tax.
Intraday Trading Tax
When you earn income from Intraday Trading then it is taxed under business income.
You may be an individual or HUF and participated in Intraday trading then the taxation on the profit is levied in two ways:
New Tax Regime & Old Tax Regime
You will have to file ITR-3, the income tax return form for Intraday Trading.
Every year, the due date to file your ITR-3 form will be before 31 July.
If Your intraday business turnover exceeds the limit (₹ 2 crore ) then it is subjected to Tax Audit, the ITR filing date will be October 31.
Example:
If you make a profit of INR 100,000.00 in a financial year then your marginal income tax rate shall be 30 percent and then you are liable to pay INR 3,000 against the tax on your intraday trading business.
Your total income shall be subjected to surcharges and the percentage shall be determined as per the slab rates.
Cess is liable at 4 percent of (basic tax + surcharge)
Carry Forward of Loss:
In case you incur a loss in your intraday trading then you can claim the loss through a procedure: ‘carry forward of loss.’
You will have to hire a professional chartered Accountant and perform the tax audit (u/s 44AD).
You can reduce the income tax liability in this way:
Carry forward the loss and it shall be set off against future profits to reduce the income tax liability.
The losses incurred in intraday trading are termed as speculative loss, they can be carried forward for 4 years and set off against speculative business only.
Non-speculative loss can be carried forward for 8 years, and it can be set off against the speculative business income and non-speculative business income.
Note:
For citizens below 60 and 60-80 years of age, the same taxation laws are applicable.
See lessWhat Percent of People in India Invest in Stock Market?
19% of Indians Invest in the Indian Stock Market As per the latest statistics, over 19% of Indians are investing in Indian Stock Market (Directly & Indirectly) It becomes more important to peep into the progress of other countries in aspects of risk-related investments. Equity markets are so sliRead more
19% of Indians Invest in the Indian Stock Market
As per the latest statistics, over 19% of Indians are investing in Indian Stock Market (Directly & Indirectly)
It becomes more important to peep into the progress of other countries in aspects of risk-related investments.
Equity markets are so slippery that a little negligence in a trade can wipe your built asset base of the underlying assets.
Indians have kept away from this trading business and for long they have been investing in savings, or in bank, bonds investments in public and in well-to-do private companies.
Are we Indians scared to put money into equities or do not intend to make more money? You will be surprised if I say, the current leading economies with whom we are competing, have their citizens’ participation in the stock market in this ratio. It is USA (55%), UK (33%), and China ( 13%).
Not surprisingly, over 19 percent of the Indian population participates in stock market trading directly and indirectly.
The statistical figures state that you will find 11 crore accounts in January 2023 and 8.4 crore when compared to the same time last year.
Remember, set aside the percentage of the population making their participation in the stock markets, you will find that more people participate.
They were retail investors, participating in selling their stocks rather than purchasing more stocks.
This business culture began and lasted until 2019, in which, a select category of retailers, institutional players, and foreign direct Investors, FDI began to increase their contribution in stock markets.
People (retail investors) began to make significant value investments in stock markets and it resulted in a net inflow of INR 15,200 crore.
In India’s two major stock exchanges NSE/BSE, it proved to manage 80 percent of the total trade value.
Moreover, Mumbai maintains a significant contribution of 67.8 %, Ahmedabad (11.4%) cash turnover in NSE.
In addition, you will notice Chennai being at 5.1%, and Delhi at 4.6.
See lessWhat is the Total Value of Indian Stock Market?
Market cap of the Indian Stock Market Indian stock market capitalisation is in the seventh position across the stock markets in a global scenario. Statistical figures affirm that India’s stock market capitalisation reached $3,739.930 billion in August 2023 and touched $2.7 trillion by the end of OcRead more
Market cap of the Indian Stock Market
Indian stock market capitalisation is in the seventh position across the stock markets in a global scenario.
Statistical figures affirm that India’s stock market capitalisation reached $3,739.930 billion in August 2023 and touched $2.7 trillion by the end of October 2023.
The Indian stock markets crossed three benchmarks and maintained a position within the first ten largest world’s stock markets when referred to their market value.
In 2021, local equities stood up to add a market value of 6.9 percent taking the nation’s market capital to $2.7 trillion and then onwards, India became forerunner to Canada, Germany, and Saudi Arabia.
You can observe a dip in the market capitalisation from August 2023 to September 2023 and it trailed from 3,739.930 USD bn to 3,728.885 USD bn.
CEIC has on record the database of market capitalisation from January 1993 to August 2023.
It was observed that the data had shown an all time high 3,739.930 USD bn in Month of August 2023 and a record low of 55.322 USD bn in the month of April 1993.
The graph above represents the market capitalisation of the equity for a period of one year, beginning from September 2022 to August 2023 in the Bombay Stock Exchange.
Usually CEIC does the currency conversion of the collected market capitalisation data from Rupee to the United States Dollar.
To conduct the rupee to dollar conversions, the period end market exchange rate of the Federal Reserve Board is taken into consideration.
What does Market Capitalisation Mean?
It is the total capital of all outstanding shares of a company rated at the existing stock market price.
Every company in the stock market is categorized that is dependent on the value of the market capitalisation. It can be large cap, mid cap or small cap.
Big companies with a large capital base are referred to as large or mega cap stocks and small companies depending on their market capitalisation are referred to as micro-caps.
Therefore, stock market capitalization is the sum total of all stocks capitalisations of the large cap, mid cap, or small cap.
See lessWhy is Stock Market Falling Today?
Reasons Behind Today’s Market Fall In the early hours of the stock market opening bell, Dalal Street experienced a dip in the sensex by 500 points and nifty took a dive to a new low of 19,400 mark. The reasons can be stated in brief. The Reserve Bank of India has made some policy review additions thRead more
Reasons Behind Today’s Market Fall
In the early hours of the stock market opening bell, Dalal Street experienced a dip in the sensex by 500 points and nifty took a dive to a new low of 19,400 mark. The reasons can be stated in brief.
The Reserve Bank of India has made some policy review additions that lead to the investors anxiety.
Foreign Institutional Investors, FII, sold stocks heavily as the US interest rates spiraled. With the sale of shares aggregating to INR 2,034.14 crore the market is expected to take a bearish trend in the time to come.
As a result, the benchmark stock indices experienced a steep dive on Wednesday.
Experts say that for the existent downward trend, the primary drivers were weak global cues, and the offload of the shares by the FIIs.
The global financial markets rattled with the US interest rates and that led to a fall in the US stock markets indices.
Further in India, the new economic data release on interest rates by the Federal Reserve has triggered uncertainty and it caused a decline in Sensex/Nifty stock prices.
The global markets created instability and its effect entered into the NSE/BSE domestic markets making the stocks stumble.
With the fall in the Sensex/Nifty, many sectoral indices like Nifty Bank, Nifty IT, Nifty Auto encountered loss plummeting by 1.4 %.
In the broader context, an increase in the crude oil barrels, strengthening of the US dollar, and overall fragility of the global economy has created an atmosphere of caution.
Devan Mehata, a research analyst advises investors to make a greater selection of stocks in a selective manner before moving forward to make an investment.
See lessUS Stock Market Opening and Closing Timings
US Stock Market Timings - Dow Jones, NASDAQ, NYSE Are you stationed in an India Geographic location? You can still do trading with International Markets and earn your profits comfortingly. If you feel that cutting across the national boundaries can enable you to make good money in trading then youRead more
US Stock Market Timings – Dow Jones, NASDAQ, NYSE
Are you stationed in an India Geographic location? You can still do trading with International Markets and earn your profits comfortingly.
If you feel that cutting across the national boundaries can enable you to make good money in trading then you need to know the stock exchange timing.
Here, when you plan to conduct trading in the US context you will require to know the details that specify the timings of stock exchange trading.
If you aren’t aware, then let me tell you the way you witness in India (NSE/BSE), you will observe NYSE/NASDAQ in the USA.
Note:
Both the stock exchanges ( NYSE/NASDAQ) have the same IST for India and they have been derived by converting the Eastern Time to Indian Standard Time.
About NASDAQ
NASDAQ is the first automated exchange in the world, with its business operations opened in 1971.
Nasdaq comprises 2,500 listed companies, the most sought for, stock market indexes, and stands a reference for the US and Other global economies.
The Nasdaq focuses on the technology trades, listed with 500 domestic and foreign companies.
About NYSE
Started on May 17, 1792, with 24 stock brokers signed up for the Buttonwood Agreement and the New York Stock Exchange began with five securities, two were bank stocks, and three government bonds.
The stock exchange began to merge with participants like American Stock Exchange, Euronext and later NYSE Euronext was bought by Intercontinental Exchange (ICE) in 2013.
A year later, Euronext completely merged with Intercontinental Exchange, ICE through initial public offering, IPO, and subsequently ICE held the ownership of the NYSE.
In the USA, as said above, NYSE/NASDAQ makes an International presence, and stock brokers, investors, traders across the globe enter into, to engage into the stocks buying/selling activities.
In a stock exchange scenario, three activities play a prominent role, they are pre-market trading hours, normal trading hours, and after-hours trading.
Sectionally, each timing represents a specific activity, defined by the respective stock exchanges.
When you decide to conduct trading in the stock markets of the USA, you will have to check for the International Standard Time, IST. Only in this timing, you will be able to seek access with those specified stock exchanges (NYSE/NASDAQ) opened up for International trading.
As you align and trade at these stock exchanges, you must know three important time frames introduced to participate in pre market trading hours, normal trading hours, and after trading hours.
NYSE/NASDAQ hold the same timing to interact during trading hours, after trading hours, and pre-market trading hours.
For pre market trading hours, the allotted time frame is between 01:30 pm to 07:00 pm, IST at NYSE/NASDAQ, therefore you need to connect online in this period.
For normal trading hours, the allotted time frame is between 07:00 PM and 1:30 AM, IST at NYSE/NASDAQ, so you must maintain an online connectivity to conduct trade.
For after market trading hours, the allotted time frame is between 01:30 am to 05:30 AM, IST at NYSE/NASDAQ, therefore, you can make online interactive sessions with the stock exchanges, if you obtain permissions.
Stock Exchanges (NSE/BSE) Timings in India:
In contrast to the US stock trade environment, you will find pre open session runs between 09:00 am to 09:15 am at NSE/BSE.
Likewise, the normal trading session runs between 09:15 am and 03:30 pm at NSE/BSE. And, the closing session is between 03:40 pm and 04:00 pm at NSE/BSE.
The time difference between Indian Stock Markets and US Stock Markets is about 09:00 hours and the US lags almost a half-day behind the Indian stock environment.
What are the Best Intraday Strategies for Expiry Day?
Best Intraday Strategies for Expiry Day Let me make it clear that Intraday strategies do not apply for expiry days. Intraday trading means you buy and sell the stocks on the same day. That means, you close the positions but if you extend it for the next day, then it is known to be delivery trade. InRead more
Best Intraday Strategies for Expiry Day
Let me make it clear that Intraday strategies do not apply for expiry days. Intraday trading means you buy and sell the stocks on the same day.
That means, you close the positions but if you extend it for the next day, then it is known to be delivery trade.
In both cases, the expiry day doesn’t exist. If you want to do expiry day trading, you will find the usage of the expiry day in futures and options trading.
In F&O, a day is fixed on which the F&O contract expires and the stock is intended to be sold before or on the day of expiry.
Best Strategies for Expiry Day Options Trading
On the expiry day, you can utilize the expiry day strategies to trade and minimize the losses that would arise otherwise.
You can adopt these strategies and they are:
For Instance,
In a bear call spread you will hold two positions, buying a call option and selling a call option with lower strike price. In this process, you will have to deal with the same underlying securities on the same expiry date.
On selling a call option, you will receive a premium from the buyer; on buying a call option, you will make a premium payment. The difference in both premiums ( receivable and payable) will lower the cost of investment. In this strategy the rewards and risks are limited.
You must utilize this strategy when you realize that the price of the underlying asset shall decline to a greater extent.
The strategy is also known to bear call credit spread as you shall gain a net credit when you enter into this trade.
Additional Information on Expiry Date @NSE/BSE
In NSE/BSE, your future and option contracts (NIFTY, NIFTY Banks, etc) will be assigned to trade expiry on specific days in a week.
If you set the expiry of the F & O contract for a week, then its expiry shall be on the assigned weekday in a week.
If you set the expiry of the F&O contract for a month/quarter then its expiry shall be on the assigned weekday of the last week in a month/quarter.
In NSE,
For NiftyBank, the expiry day will be Friday of the week.
For Financial Nifty (FINNIFTY), the expiry day will be Tuesday of the week.
NIFTY MidCap Select Index (focuses on the first 25 stocks under the Nifty Midcap 150 Index, the expiry day will be Wednesday of the week.
NIFTY 50, the expiry day will be Thursday of the week.
In BSE,
Sensex Index, the expiry day will be Friday of the week.
Bankex Index, the expiry day will be Friday of the week.
Note:
If the date of expiry happens to be in the list of calendar holidays then a day before shall be considered as expiry day.
See less