Most needed points for Intraday trading was covered.
Positional analysis focused on demand and supply where is the intra day analysis focused on that day's sentiment and momentum. Intraday analysis is the method of analysis to identify the stocks that needs to be traded(bought & sold) in the same day to make income/profit.
The intraday happens in the SPOT market and the settlement happens in the same day. Hence it is mandatory to close the intraday position on the same day, otherwise will be charged for penalty. ... In Intraday trading any short position created has to be exited or bought back before the close of the same day.
I think there is no ideal time for Intraday.. Whenever there is a chance to enter, we have to use the chance. Better to avoid trading in first 30 minutes and last 45 minutes.
Yes,Global markets have impact on Intraday price movement,since markets are open at different times it affects. If global market is down,then the Indian market will be down followed by European market,since it is a CHAIN process
Positional analytical methods suitable for shorter time frame like weeks or month time. But Intraday trade is on the same day. We have to close our position within the day.That's why we can't use the positional analytical method for Intraday.
The momentum stock needs to be identified with the analysis of various parameters.
Market direction needs to be analysed using the global market movement along with Indian market(Nifty), and need to find whether the sentiment of the market is positive or negative. Foreign Individual Investor(FII) activity also needs to be considered.
Market Advance/ Decline ratio needs to be analysed using the market breath chart(Counterwise and turnover basis) and need to arrive whether it align with the market direction as positive or negative.
Sector Contribution: Based on this direction, need to identify the sector which contributes majorly for this trend and the corresponding sector needs to be selected.
Index Selection: The major index that contributes to the market direction needs to be identified and selected for further analysis.
Stock Selection: The stocks come under that index needs to be analysed on price wise and turn over wise and the stock which is contributing high on both price and turn over needs to be selected for trading.
The process of identifying the momentum stock in Intraday is as follows :-
1. Identify the Market Direction i.e, whether the market is +ve or -ve.
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 for the prevailing market direction.
6. Now Filter top 4 stocks from the filtered sectors.
7. Again filter the stocks that is trading with the high volume.