How to Analyze Stocks for Intraday Trading
Intraday Trading Begins With Stock Selection
In intraday trading, stock selection is everything.
Even a perfect strategy fails if you pick the wrong stock.
And an average strategy performs beautifully if you choose the right stock.
This is why professional traders follow a systematic analysis process before entering any trade.
At NIFA (Nirman Institute of Financial Analysis), we train thousands of traders to understand how to analyze stocks correctly—using technical, psychological, and real-market tools that actually work.
This blog is your complete guide to analyzing and selecting stocks for intraday trading like a pro.
Step 1: Check the Market Trend (Market Direction = Your Direction)
Intraday trading works BEST when you trade with the market trend.
✔ Key tools to analyze the trend:
Nifty / Bank Nifty direction
SGX Nifty cues
Pre-market data
Sector performance
Global market trends
✔ Basic rule:
👉 If market is bullish, look for BUY trades
👉 If market is bearish, look for SELL trades
NIFA teaches students how to read overall market sentiment within the first 5 minutes of opening.
Step 2: Choose High Volume Stocks (Volume = Strength)
Volume shows interest, activity, and participation.
Good intraday stocks always have:
High trading volume
Strong price movement
Clear momentum
Examples:
✔ Banking stocks
✔ IT stocks
✔ Auto stocks
✔ Index-heavy stocks
NIFA Tip:
Avoid low-volume stocks; they move slow and hit stop-loss more often.
Step 3: Analyze Stock Volatility (Intraday Requires Movement)
A stock must move for you to profit.
But it must not be TOO volatile.
✔ Ideal volatility:
1% to 3% daily movement
Clean candles
Controlled wicks
Consistent patterns
Avoid extremely volatile stocks during news events or announcements.
Step 4: Identify Stocks Making Breakouts or Breakdowns
Breakouts and breakdowns are intraday trader’s best friends.
✔ Look for:
Resistance breakout
Support breakdown
Retest confirmations
High-volume breakout candles
Breakout trading is one of the most reliable intraday strategies taught at NIFA.
Step 5: Focus on Stocks in the News
Stocks that are in the news show strong momentum.
Examples:
Earnings results
Government policies
Sector news
FIIs/DII activity
Mergers / acquisitions
But don’t trade blindly.
Combine news + technical analysis.
Step 6: Use Technical Analysis
At NIFA, we teach simple, powerful indicators:
✔ RSI
Find overbought/oversold zones + divergences.
✔ VWAP
Perfect for intraday trend direction.
✔ Moving Averages
20 & 50 EMA for intraday clarity.
✔ MACD
Momentum + trend confirmation.
Important:
Indicators help, but price action is king.
Step 7: Analyze Support & Resistance Levels
This is the backbone of intraday analysis.
✔ Support → Buying zone
✔ Resistance → Selling zone
Stocks tend to move between these levels.
NIFA teaches students how to plot:
Intraday supports
Daily supports
Hourly structure
Strong levels = high probability trades.
Step 8: Sector Analysis – Trade the Strongest Sector
Intraday traders must follow where money is flowing.
If Bank Nifty is strong → Trade banks.
If Auto sector is strong → Trade auto stocks.
If IT sector is weak → Short IT stocks.
Sector strength = Stock strength.
Step 9: Look for Liquidity & Narrow Spreads
ood intraday stocks have:
Tight bid-ask spreads
Quick fill orders
Smooth chart movement
Avoid stocks with:
❌ Large spreads
❌ Low liquidity
❌ Big gaps
These increase your trading cost.
Step 10: Use Pre-Market Data (The Smart Way)
Pre-market analysis helps you identify:
✔ Gap up stocks
✔ Gap down stocks
✔ Most active stocks
✔ Top gainers/losers
NIFA students use this data daily to prepare for the first 30 minutes of trading.
Checklist: The Perfect Intraday Stock Must Have…
✔ High volume
✔ Clear trend
✔ Strong price action
✔ Good volatility
✔ Tight spreads
✔ Strong sector
✔ Breakout/breakdown opportunities
✔ Support/resistance clarity
When all these align → you get high-probability trades.
What NIFA Teaches About Intraday Stock Analysis
NIFA’s professional training includes:
✔ Live market stock selection
✔ Price action analysis
✔ Volume interpretation
✔ Real-time strategy execution
✔ Entry & exit precision
✔ Emotion control in intraday
✔ Risk management for quick trades
Students learn how to analyze stocks with confidence—
not by guessing, but by following a system.
Conclusion: Master Intraday Stock Analysis with NIFA
Intraday trading is profitable only when you pick the right stocks.
With the right analysis system, you can:
✔ Trade safely
✔ Avoid unnecessary losses
✔ Identify high-quality opportunities
✔ Grow your consistency
NIFA teaches you EVERYTHING you need to analyze stocks like a pro.
You don’t need luck.
You need skill, discipline, and the right guidance — with NIFA.
📞 Join NIFA & Master Intraday Trading Today
🌐 www.nifa.co.in
📞 Call/WhatsApp: +91-97 5555 3333
📍 Bhopal, Madhya Pradesh
NIFA — Learn. Trade. Grow.
