Intraday Analysis – Stage 10

Intraday analysis is studying the market of the present day using Top down approach based on the market sentiment. It differs from positional analysis by focusing only on the present day and does not consider the past price behaviors. It is mandatory to settle the trade before the market closes in intraday. we cannot carry it and not settling by the time market closes it goes to the auction market and might incur additional costs and fines. The ideal time for intraday is morning 10.00 to 11.00 and afternoon 2.00 t 2.45. As intraday market is driven by sentiment the overall sentiment in the global market also influences the intraday markets in India. Further some of the powerful global players in trading will be trading in the Indian market influencing the sentiment. The stock to be traded is identified by using top down approach. firstly, we have to find out the global market sentiment if its positive or negative. then foreign institutional investors flow should be considered. the next factor is to find out the overall movement of the Indian market. once the overall movement is identified we have to look inn to the advance and decline ratio, in which we can find out how many companies are moving positive and negative. once it is in line with the overall sentiment then we can move to the sectoral index. Choose the one that is flowing with the market. (if the overall sentiment is negative choose the stock which is most negative). Choose the top 4 and check for consistency with turnover and volume. Create the position based on the sentiment. and the intraday price movement.