Intraday trading has become extremely popular in India over the last few years. With the rise of mobile trading apps, faster internet, and easy access to stock market platforms, many beginners are exploring intraday trading to generate daily income from the stock market.
However, most new traders jump into intraday trading without proper knowledge, which often leads to losses. The truth is that intraday trading can be profitable only when you understand the right strategies, risk management, and market behaviour.
In this detailed guide, you will learn how to start intraday trading in India for beginners, including the basics, required accounts, strategies, tools, and tips to become a successful intraday trader.
intraday stock trading
What is Intraday Trading?
Intraday trading, traders open and close their positions before the market closes, so no stock is carried forward to the next day.
The main objective of intraday trading is to earn profit from small price movements during the day.
Example of Intraday Trading
Suppose a stock is trading at ₹500 in the morning.
- You buy 100 shares at ₹500
- During the day, the price increases to ₹510
- You sell the shares the same day
Your profit would be:
₹10 × 100 shares = ₹1000 profit (before brokerage and taxes).
If you do not sell the stock before the market closes, most brokers will automatically square off the position.
Why Intraday Trading is Popular in India
Intraday trading attracts many people because it offers opportunities to earn money quickly without holding stocks for long periods.
Here are some major reasons why people prefer intraday trading:
1. Quick Profit Opportunities
Traders can make profits from daily market movements.
2. No Overnight Risk
Since positions are closed the same day, traders avoid overnight news or global market impact.
3. Margin Facility
Most brokers provide 5x to 20x leverage, meaning traders can trade with larger capital.
4. High Liquidity
Stocks in the Indian market offer good liquidity, allowing traders to enter and exit easily.
Requirements to Start Intraday Trading in India
Before starting intraday trading, you must have the following essentials.
1. Demat Account
A Demat account stores your shares electronically.
Popular brokers in India include:
- Zerodha
- Upstox
- Angel One
- Groww
- ICICI Direct
2. Trading Account
A trading account allows you to buy and sell stocks in the market.
Usually, the trading account is linked with your Demat account and bank account.
3. Bank Account
Your bank account is used to add funds for trading and withdraw profits.
4. Trading Platform or App
You will need a reliable trading platform such as:
- Zerodha Kite
- Angel One App
- Upstox Pro
- Groww App
These platforms provide charts, technical indicators, and order placement tools.
How Intraday Trading Works in India
The Indian stock market operates during the following hours:
- Pre-Open Market: 9:00 AM – 9:15 AM
- Market Open: 9:15 AM
- Market Close: 3:30 PM
Intraday traders usually trade during high volatility periods, especially:
- 9:15 AM – 11:30 AM
- 2:00 PM – 3:15 PM
During these times, the market shows strong price movements.
Best Stocks for Intraday Trading
Not every stock is suitable for intraday trading. Beginners should choose stocks that have high liquidity and volatility.
Characteristics of Good Intraday Stocks
- High trading volume
- Strong price movement
- Tight bid-ask spread
- News or event-driven movement
Popular Intraday Stocks in India
Some commonly traded stocks include:
- Reliance Industries
- HDFC Bank
- ICICI Bank
- Tata Steel
- Infosys
- State Bank of India
These stocks usually provide consistent liquidity for intraday traders.
Best Intraday Trading Strategies for Beginners
Beginners should always follow a strategy instead of trading randomly.
Here are some effective intraday trading strategies.
1. Momentum Trading Strategy
Momentum traders look for stocks that are moving strongly in one direction with high volume.
Steps
- Identify stocks with strong movement
- Enter the trade when momentum confirms
- Exit when momentum slows
This strategy works well during news-based or breakout movements.
2. Breakout Trading Strategy
Breakout trading involves buying a stock when it breaks an important resistance level.
Example
If a stock repeatedly fails to cross ₹500 and suddenly breaks above it with volume, traders enter the trade expecting a strong upward movement.
3. Moving Average Strategy
Moving averages help identify the trend direction.
Commonly used averages:
- 20 Moving Average
- 50 Moving Average
- 200 Moving Average
When the price crosses above the moving average, it may signal a buy opportunity.
4. Scalping Strategy
Scalping involves making multiple small profits throughout the day.
Scalpers typically:
- Hold trades for seconds or minutes
- Focus on small price movements
- Use high trading volume stocks
This strategy requires quick decision-making.
Intraday Trading Indicators Beginners Should Use
Technical indicators help traders analyse price movements.
Here are some commonly used indicators.
Relative Strength Index (RSI)
RSI helps identify overbought and oversold conditions.
- RSI above 70 → Overbought
- RSI below 30 → Oversold
Moving Average Convergence Divergence (MACD)
When MACD crosses above the signal line, it may indicate a buy signal.
Volume Indicator
High volume confirms strong price movement.
Risk Management in Intraday Trading
Risk management is the most important factor for long-term success.
Many traders fail because they ignore risk control.
Here are essential risk management rules.
Always Use Stop Loss
A stop loss automatically closes a trade when the price reaches a certain level.
Example:
- Buy stock at ₹500
- Stop loss at ₹495
Maximum loss = ₹5 per share
Risk Only 1–2% Per Trade
This protects your account from big losses.
Avoid Overtrading
Taking too many trades leads to higher brokerage and emotional decisions.
Focus on high-quality setups only.
Common Mistakes Beginners Make in Intraday Trading
Many beginners repeat the same mistakes in the stock market.
Avoid these common errors.
1. Trading Without Knowledge
Entering the market without learning strategies leads to losses.
2. No Stop Loss
Ignoring stop losses can wipe out your entire capital.
3. Following Tips Blindly
Do not blindly follow Telegram or WhatsApp tips.
4. Emotional Trading
Fear and greed can cause bad trading decisions.
How Much Money is Required to Start Intraday Trading
You can start intraday trading in India with ₹5,000 to ₹10,000.
However, a more practical amount is ₹25,000 to ₹50,000.
This allows better risk management and trade flexibility.
Many brokers provide margin trading, which increases buying power.
Example:
If a broker provides 5x margin, then:
₹20,000 capital → ₹1,00,000 trading power
But beginners should use the margin carefully.
Intraday Trading Tips for Beginners
Here are some practical tips to improve your trading success.
Trade with the Trend
Always follow the market trend rather than predicting reversals.
Focus on 2–3 Stocks
Do not track too many stocks. Focus on a few quality stocks.
Avoid Trading in the First 5 Minutes
The market is highly volatile at the opening.
Maintain a Trading Journal
Record every trade to analyse what works and what doesn't.
Practice with Paper Trading
Use demo trading accounts before risking real money.
Tax Rules for Intraday Trading in India
Intraday trading profits are considered speculative income under Indian tax laws.
This means:
- Profits are taxed according to your income tax slab.
- Losses can be carried forward for 4 years.
You should maintain proper records of profit, loss, brokerage, and taxes.
Best Time for Intraday Trading
Experienced traders prefer these time windows.
Morning Session (9:30 AM – 11:00 AM)
High volatility and strong trends.
Afternoon Session (2:00 PM – 3:15 PM)
Late-day movements and trend continuation.
Avoid trading during midday sideways markets.
How Long Does It Take to Become a Profitable Trader?
Intraday trading is a skill that takes time to master.
Most traders require 6 months to 2 years of practice to become consistently profitable.
Success depends on:
- Discipline
- Strategy
- Risk management
- Market experience
Treat trading like a professional skill, not gambling.
Conclusion
Intraday trading can be a powerful way to generate income from the stock market, but it requires knowledge, discipline, and proper risk management. Beginners should start by learning the basics, opening a trading and Demat account, and practising with small capital.
Instead of chasing quick profits, focus on understanding market trends, using technical indicators, and following a structured trading strategy. Always remember that losses are part of the trading journey, and the key to success is consistent learning and emotional control.
If you approach intraday trading with patience and the right mindset, it can become a valuable skill that provides long-term financial opportunities in the Indian stock market.