3 Essential Intraday Trading Techniques for Indian Markets | Espresso

3 Must-Have Intraday Trading Strategies in India

Intraday trading is popular, especially in the Indian stock market. People are earning an extra means of income with this trading style. Being human, our desires will never end, and to fulfill these desires, we need additional income apart from extra savings. Trading can allow people to live their dreams and do whatever they want to enjoy their lives fully. Yes, it consists of risks, but investing carefully in the share market can help you a lot.

Published on 04 October 2023

This blog aims to provide you with information about the most popular form of trading, intraday, also known as day trading. Investors buy and sell the stocks within the same trading day. However, this method of trading contains higher risk and volatility. So, intraday traders must follow well-defined strategies that can increase their chances of making more profits.

This blog will shed light on three must-have intraday trading strategies used by exports and highly effective in the Indian market.

Introduction of Intraday Trading in India

Before knowing the strategies, it's essential to understand the concept of intraday trading and its relevance in the Indian stock market. Intraday trading refers to traders dealing with multiple trades daily to profit from small price movements. This trading style appeals to both seasoned traders seeking quick profits and newbies testing the waters of the stock market.

While intraday trading seems exciting, it consists of complex challenges. The rapid nature of day trading needs swift decision-making and the ability to control emotions. Moreover, the Indian stock market is highly influenced by global factors and domestic events, making real-time data and technical analysis indispensable for successful intraday trading.

3 Must Follow Strategies for Intraday Trading in India

Let’s look at the most followed strategies for intraday investors in India given by experts.

Strategy 1 - Momentum Trading

Momentum trading is a popular intraday strategy that identifies stocks with substantial price movements in a specific direction. In the Indian market, this strategy works exceptionally well due to many stocks' high volatility and liquidity.

To employ momentum trading, traders analyze technical indicators like Moving Averages, Relative Strength Index (RSI), and Moving Average Convergence Divergence (MACD) to spot potential momentum stocks. Stocks that exhibit strong trends and high trading volumes are usually preferred.

Once a momentum stock is identified, traders enter the trade with precise entry and exit points. They set a stop-loss order to limit potential losses and take profits once the stock reaches a predetermined target. The key to successful momentum trading lies in quick execution and disciplined risk management.

Real-life examples demonstrate the power of momentum trading in the Indian market. For instance, during an earnings announcement, if a company surprises the market with better-than-expected results, its stock may experience a sharp price surge. A momentum trader keenly tracking such developments can capitalize on the uptrend for quick profits.

Strategy 2 - Breakout Trading

Breakout trading is another valuable strategy for intraday traders in the Indian market. This strategy involves identifying key price levels where a stock's price movement has the potential to break out of its current range, leading to a significant price shift in either direction.

To spot breakout opportunities, traders focus on chart patterns like triangles, rectangles, and head and shoulders formations. Additionally, they analyze support and resistance levels, as these can act as triggers for a breakout.

Once a breakout is identified, traders initiate a position with a stop-loss order to protect against potential losses if the breakout fails. Moreover, trailing stop-losses can lock in profits as the trade progresses.

Indian markets, characterized by frequent price gaps and sudden shifts, offer abundant breakout opportunities for traders. Successful breakout trading can lead to substantial profits within a single trading session.

Strategy 3 - Pairs Trading

Pairs trading is a unique intraday strategy involving the simultaneous buying and selling of two correlated stocks. This strategy is based on the concept that certain stocks move in tandem, and any deviation from their typical relationship presents a trading opportunity.

To execute pairs trading, traders use statistical tools to identify pairs of stocks with a historical correlation. They then monitor the performance of each stock within the pair and place trades accordingly. Pairs trading aims to be market-neutral, meaning it seeks to profit from the relative performance of the two stocks rather than the overall market direction.

In the Indian context, pair trading can be particularly advantageous during uncertain market conditions. When the broader market exhibits volatility, market-neutral strategies like pairs trading can offer a hedge against market risks.


Intraday trading in the Indian stock market provides traders exciting opportunities for quick profits. However, it also demands a deep understanding of market dynamics and a solid grasp of effective trading strategies. The three must-have intraday trading strategies - Momentum Trading, Breakout Trading, and Pairs Trading - offer valuable insights on best share for intraday today into navigating India's fast-paced and ever-changing world of intraday trading.

Successful intraday trading requires discipline, risk management, and continuous learning. Traders must conduct thorough research, practice in simulated environments, and stay updated on the market trends of intraday trading stocks today to increase their chances of success in this thrilling endeavor.

Chandresh Khona
Team Espresso

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