To maximize your profits as a trader, you should try to trade Nifty 50 or Sensex stocks, or even FNO scripts. These stocks have plenty of liquidity, so price difference between buyers and sellers will not cost you money.
There are a number of FIIs and DIIs that have significant exposure to these blue-chip stocks. Therefore, choosing stocks with a high proportion of FIIs and DIIs will add more value. Before investing money in these companies, these people have already done their due diligence.
Let's take Reliance industries, for example
Reliance industries has been a part of Nifty 50 index since inception.
Look at the share holding pattern of reliance as of 26 August 2022.
Promoter Holding :- 50.26%
FII :- 23.87%
DII :- 14.87%
Public :- 10.65%
A 10% fall in Reliance can be seen as an attractive buying opportunity by FII's as well as DII's.
A 20% fall is a must-buy opportunity. These companies already have a huge brand value, supporting these stock's price. When such companies are trading at such discounted prices, many FII's and DII's are already hopping in to invest in these companies.
In any case, there is no need to point out that the promoter will not sell his holdings.
Countless intraday traders tend to hold on to trade if the price goes in opposite direction. Trading in such blue-chip stocks gives you an added cushion if the stock prices go down.
Despite the fact that stopless should be the most important component of an intraday trader, it is not strictly followed.
Let's look at some stocks which you can shortlist for intraday Trading.
TCS.
RELIANCE.
SBI
BHARTI AIRTEL.
HDFC Bank.
All the above stocks give good amount of intraday movement and has substantial weightage in both NIFTY 50 and Sensex.
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