Mastering Intraday Strategy for Beginners on NSE

Introduction

Intraday trading, often known as day trading, is one of the most popular forms of stock market trading in India. It offers the potential to earn quick profits within a single trading day. With the rise of platforms like Zerodha, Upstox, and Groww, more retail investors are entering the National Stock Exchange (NSE) to try their hands at intraday trading.

But here's the truth: while intraday trading can be profitable, it also demands discipline, planning, and the right strategies—especially for beginners. This article will walk you through proven intraday strategies tailored for the NSE, making it easier for you to get started with confidence.

What is Intraday Trading?

Intraday trading involves buying and selling stocks within the same trading day. The primary goal is to capitalize on small price movements rather than long-term growth.

➤ Example: If a stock opens at ₹200 and rises to ₹210 by midday, an intraday trader may buy it at ₹200 and sell it at ₹210, pocketing a ₹10 profit per share (minus brokerage and taxes).

Unlike delivery trading, intraday positions must be squared off (closed) before the market closes—currently at 3:30 PM IST on the NSE.

Why is Strategy Important for Intraday Trading?

Without a strategy, intraday trading is no different from gambling. With the high volatility in the stock market, a single wrong move can wipe out your capital. A structured approach helps you:

➤ Manage risks
➤ Avoid impulsive decisions
➤ Identify profitable trades
➤ Preserve your capital

1. ➤ Trend Following Strategy (Momentum Strategy)

This is one of the simplest and most reliable strategies for beginners.

How it works:
You identify stocks that are moving strongly in one direction—either upward (bullish) or downward (bearish). The idea is to ride the trend for a short-term profit.

Indicators to Use:
➤ Moving Averages (EMA 20, EMA 50)
➤ RSI (Relative Strength Index)
➤ MACD (Moving Average Convergence Divergence)

Entry Point: When the stock price breaks above a resistance level with high volume.

Exit Point: Set a target (like 2-3%) or use a trailing stop-loss to lock in profits.

Example:
If Tata Motors breaks ₹700 resistance with high volume at 10:30 AM, and RSI is above 60, a trader may buy and exit at ₹715 with a 2% profit.

2. ➤ Breakout Strategy

Breakouts occur when stock prices move outside a defined support or resistance level with increased volume. This often indicates a new trend forming.

How to identify breakouts:
➤ Watch for price consolidations (sideways movement)
➤ Mark strong support and resistance levels
➤ Wait for a candle to close beyond these levels with high volume

Best Timeframe: 5-minute or 15-minute charts

Pro Tip: Use Volume Weighted Average Price (VWAP) along with breakouts to confirm momentum.

Risk Management: Always set a stop-loss slightly below the breakout point.

3. ➤ Opening Range Breakout (ORB)

This strategy focuses on the price action during the first 15–30 minutes of market opening.

How it works:
➤ Mark the high and low of the first 15–30 minutes of trading.
➤ If the stock breaks above this range with volume, go long.
➤ If it breaks below, go short.

Why it works:
The opening range often defines the sentiment of the day—bullish or bearish. ORB helps traders catch early trends.

Tools Needed:
Price action, 15-minute chart, volume indicator.

4. ➤ VWAP Strategy

VWAP (Volume Weighted Average Price) is a popular intraday indicator used by institutional traders and professionals.

What is VWAP?
It’s the average price of a stock throughout the day, weighted by volume. It reflects the true market sentiment.

Strategy:
➤ If the price is above VWAP, consider long trades.
➤ If the price is below VWAP, consider short trades.
➤ Use VWAP as a dynamic support/resistance level.

Tip for Beginners: Combine VWAP with RSI for better accuracy.

5. ➤ Gap-Up and Gap-Down Strategy

Gaps occur when a stock opens significantly higher or lower than its previous closing price due to after-market news or earnings.

Gap-Up Strategy:
If the stock opens higher but sustains above its opening price with volume, it may continue upward.

Gap-Down Strategy:
If the stock opens lower and fails to recover, it may continue downward.

Confirmation Tools:
Volume, price action, previous day’s high/low levels.

Essential Tools & Platforms for Intraday Traders

➤ Charting Platforms: TradingView, Zerodha Kite, Upstox Pro
➤ Indicators: VWAP, EMA, RSI, MACD
➤ News Sources: Moneycontrol, ET Markets, NSE India official website
➤ Screeners: Chartink, Screener.in for technical filters

Risk Management for Beginners

One of the golden rules of intraday trading is capital preservation. Even the best strategy can fail, so managing your risk is critical.

➤ Position Sizing: Don’t risk more than 1-2% of your total capital on a single trade.
➤ Stop-Loss: Always set a stop-loss while placing your order.
➤ Target: Aim for a realistic profit-to-loss ratio (preferably 2:1).
➤ Avoid Overtrading: Stick to 2-3 high-quality trades a day.

Psychological Discipline

The biggest challenge for beginners isn't just strategy—it’s emotion control. Fear, greed, and impatience can ruin good setups.

➤ Stick to your trading plan
➤ Don’t chase losses
➤ Take breaks if needed
➤ Journal your trades to learn from mistakes

Common Mistakes New Intraday Traders Make

➤ Trading without a stop-loss
➤ Relying only on tips or WhatsApp groups
➤ Ignoring risk-reward ratio
➤ Getting influenced by market noise
➤ Not backtesting or practicing strategies

Real-Life Case Study: NSE Intraday Success Example

Trader: Ramesh, a 30-year-old IT professional from Pune
Capital: ₹50,000
Strategy Used: VWAP + RSI on 5-minute chart
Stock: HDFC Bank
Result: In 3 months of consistent trading, with strict discipline and 3% risk per trade, he scaled his capital to ₹75,000 with ~50% accuracy rate and a 2:1 risk-reward ratio.

This case proves that even small traders, when consistent and disciplined, can succeed in the NSE intraday space.

Final Thoughts: Should You Start Intraday Trading on NSE?

Intraday trading on the NSE can be rewarding, but it's not a get-rich-quick scheme. It requires preparation, strategy, emotional discipline, and ongoing learning.

➤ Start with paper trading or virtual platforms
➤ Focus on one strategy and master it
➤ Track your trades and learn from your journey
➤ Always protect your capital—profits will follow

If you treat intraday trading as a serious profession and not a gamble, the NSE offers tremendous opportunities to grow.