Selection of the stocks and identifying its entry and exit levels very quickly is very important for intraday trading.
In positional trading, we have time to study the chart clearly, find out the technical formations, identify the solid demand over supply and mark its entry & exit levels but in Intraday trading, the market sentiments can change very quickly and hence identifying the stock and marking its entry and exit levels is a very quick process and we have to follow a top down approach.
To study the market sentiment, we have to understand the sentiment of the global markets, check the FII activities because they are large volume players, Study the Indian market sentiment, identify the sector and then pick up the stock which is following the market sentiment with good volume.
To market the entry & exit levels. study the chart of the company. In a bullish market, create a long position when the stock crosses the previous top high. Target should be 1x of the risk taken which is the previous top low.