Tried-n-Tested Intraday Strategies for Traders in India | Espresso


In the Indian stock market, intraday trading (also known as day trading) has garnered significant popularity. It involves buying and se­lling financial instruments within a single trading day, aiming for swift profits. However, despite its profit potential, intraday trading carrie­s inherent risks. For traders to flourish in this dynamic field, a carefully devised strategy is essential. 

Published on 23 October 2023

This blog post discovers the three indispensable­ intraday trading strategies that can help individuals to navigate the Indian stock market with greater effectiveness.

Strategy 1: Moving Averages

Moving averages are a fundamental tool in intraday trading strategies. They help traders identify trends and potential entry and exit points. There are two common types of moving averages: the Simple Moving Average (SMA) and the Exponential Moving Average (EMA).


SMA (Simple Moving Average):

The SMA is calculated by summing up a set number of closing prices (e.g., 10, 20, or 50) and dividing the sum by the number of periods. This results in a single line that represents the average price over that specific period.

How to Use SMA in Intraday Trading:

  • Golden Cross and Death Cross: Look for opportunities when the shorter-term SMA crosses above the longer-term SMA, known as the Golden Cross. This suggests a bullish trend. Conversely, when the shorter-term SMA crosses below the longer-term SMA, it's called the Death Cross, indicating a bearish trend.
  • Support and Resistance: Identify key support and resistance levels using SMA. When prices are above the SMA, it can act as support, and when below, it can act as resistance.

EMA (Exponential Moving Average):

The EMA gives more weight to recent prices, making it more responsive to price changes compared to the SMA. It is particularly useful for short-term traders.

How to Use EMA in Intraday Trading:

  • Crossovers: Similar to SMA, look for bullish opportunities when the shorter-term EMA crosses above the longer-term EMA and bearish opportunities when the opposite occurs.
  • Pullbacks: During an uptrend, consider buying when the price touches or slightly dips below the EMA and then resumes its upward movement.

Moving averages are versatile tools that can be applied to various timeframes, making them essential for intraday traders in India. However, it's crucial to combine moving averages with other indicators and risk management strategies to make informed decisions.

Strategy 2: Support and Resistance Levels

Support and resistance levels are critical for intraday traders as they help identify potential entry and exit points. Support represents a price level where intraday trading stocks today tends to find buying interest and bounce higher. Resistance is the opposite, where selling interest is concentrated, causing the price to stall or reverse.

How to Use Support and Resistance in Intraday Trading:

  • Breakouts: Look for opportunities when a stock's price breaks above a strong resistance level or below a robust support level. These breakouts can lead to significant price movements.
  • Reversals: If a stock approaches a resistance level during an uptrend, it might be a good time to consider selling, as it could reverse. Conversely, during a downtrend, when a stock nears a support level, it may present a buying opportunity.
  • Price Patterns: Support and resistance levels often form patterns like triangles, rectangles, or head and shoulders. Recognizing these patterns can help traders anticipate future price movements.
  • Volume Confirmation: Pay attention to trading volume when a stock approaches support or resistance. A breakout or reversal is more reliable when accompanied by increased trading volume.

It's essential to identify and mark these levels on your intraday trading charts. These levels can be determined through historical price data, pivot points, or other technical analysis tools. Combining support and resistance analysis with other strategies can enhance your intraday trading strategies success in India.

Strategy 3: Scalping

Scalping is a high-frequency intraday trading strategy that focuses on making small, quick profits on numerous trades throughout the day. Scalpers aim to capitalize on minimal price movements in highly liquid stocks or currency pairs. While scalping requires precision and quick decision-making, it can be profitable for traders who can handle the intensity.

How to Use Scalping in Intraday Trading?

  • Select Liquid Instruments: Scalping works best with highly liquid assets that have tight bid-ask spreads. These include major currency pairs, blue-chip stocks, or commodities like crude oil.
  • Use Short Timeframes: Scalpers often use very short timeframes, such as one-minute or five-minute charts, to spot quick entry and exit opportunities.
  • Tight Stop-Loss Orders: Given the rapid nature of scalping, it's crucial to set tight stop-loss orders to limit potential losses.
  • Risk Management: Due to the high trading frequency, effective risk management is vital in scalping. Only risk a small percentage of your trading capital on each trade.
  • Continuous Monitoring: Scalpers must closely monitor their chosen instruments and be prepared to act swiftly when a trading opportunity arises.

While scalping can be highly profitable, it's not suitable for all traders. It requires discipline, a reliable trading platform, and the ability to handle stress. Additionally, transaction costs, such as spreads and commissions, can significantly impact scalping profits.

Final Thoughts

Intraday trading in India prese­nts significant profit opportunities, but it also carries inhere­nt risks. To excel as an intraday trader, it is e­ssential to develop and e­xecute effe­ctive strategies. Thre­e crucial strategies to maste­r are moving averages, support and re­sistance levels, and scalping. Ke­ep in mind that no strategy guarantee­s success, so prioritizing risk management is vital. Continuously finding the best share for intraday today, e­ducating yourself, practicing with a demo account, and see­king advice from experie­nced traders can all contribute to e­nhancing your intraday trading skills.

Chandresh Khona
Team Espresso

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