Intraday Analysis

Intraday analysis is to analyse the market trend and price movement to make profit for buying/selling or selling/buying the stocks on the same day. The analysis is the top down approach and needs to be focused on that day’s sentiment and momentum analysis. The parameters to be considered for intraday analysis is different from positional and the intraday analysis needs to be completed in shorter time. Positional analysis focuses on demand and supply whereas the intra day analysis focuses on that day’s sentiment and momentum. The intraday happens in the SPOT market . Hence it is mandatory to close the intraday position on the same day of trading, otherwise will be charged for penalty. The IDEAL time for trading Intraday would be between 10 am to 11.30 am in the morning and between 1.30 pm to 2.45 pm in the afternoon. The sentiment of the global market will get reflected in Indian market and hence affect the price movement. Since Asia market starts ahead of Indian market, the overall situation of the Asian market will be reflected in Indian market, similarly the impact of the price movement in UK market will be reflected in Indian market, so it is important to watch out the global market direction for intra day analysis. Intraday analysis is done using the Top Down Approach.
The process of identifying the momentum stock in Intraday is as follows :-
1. Identify the Market Direction i.e, whether the market is positive or negative.
2. Check Market Breadth (Advance / Decline)
3. Check sector contribution that is weighing for the market direction.
4. Check the Index contribution for the current prevailing market direction.
5. Take top two sectors that is the major contributor.
6. Now Filter top 4 stocks from the filtered sectors.
7. Again filter the stock with high volume.