Well, the information you are going to get from this blog is going to be very useful in your lifetime. See, today our topic is how to select best stocks for intraday. Now intraday means that you buy it in one day and sell it in another day. In fact, you can buy it by selling it. Now, whether you trade in options or futures or simply intraday, the information you are going to get in this blog will be very useful for you. So in this blog, we are basically going to identify stocks, such stocks in which you can get big move.
We are talking about that too in just one day, in intraday. See, in stocks, you understand that a good move can come in just one day. Whence talk about Nifty, Bank Nifty or Fin Nifty, we definitely say that if a 1% move comes, it is a very good move. If a 2% move comes, it is a very big move, but in stocks, a 3,4, 5% move can also come in a day and you think if a 5% move comes in stocks, a 3% move comes, then how much money can be made in options. If you understand this concept today, which I am going to tell you, see I am repeating, the concept is very important.
Today, what you are going to learn, now you can use it in index or in stocks. It is important to understand the concept. Now, what is the concept? Now, you all know that a lot of money will be made when either there is a breakout in the price or there is a breakdown. Now, what is this breakout or breakdown? You people understand that there is something called resistance and there is something called support. So when the price breaks the resistance, then we say that the breakout has come and when the price breaks the support, then we say that the breakdown has come.
Now, when the breakout moves come, there are very strong chances of making money and when there is a breakdown, there are also chances of making money, but if you rely only on price action, then on the basis of price action, we see many times that the price has gone up, but it turned out to be a false breakout. The price went up, but it went up and then came down. In fact, in this blog, I am also going to tell you how you will identify a false breakout and similarly, when there is breakdown, the price goes down and then bounces back.
Now how will we know this and weave come to a right conclusion, we identify such stocks and I will tell you this first in this blog, you in a second, as I am telling you in a click, today you will press a button and those stocks will come in front of you, which will be giving breakout or will be giving breakdown, you will find out and you will be able to identify them and the logic behind it, I will tell you first that why we can take trade here, how we can identify the best stocks and you will also find out when you are going to get a breakout in Nifty, when you are going to get a breakout in Nifty or you are going to get a breakdown and where a big move is expected. So the concept that you must be understanding so far, it must be that we are basically talking about breakout and breakdown first and here we are talking about resistance and support.
Now I am assuming that there are many people who may be at the beginner level. My job is to cater to everyone, so if you know the basics, then stop little. I am going to give a lot of things in this blog. Now let’s talk about those people who basically have resistance and support. First I will teach you how to plot on the chart. It is very easy. I will tell you in a minute. So how do we find out support and resistance? We will show you this. Alright, so now we have come to the chart.
Basically, it is the chart of Nifty today. So you were seeing that Nifty was stuck in a very long range. Now how do you know the range? Basically, how do you identify resistance? So here I have placed some horizontal lines for you. I will tell you the important concept of this. Now see, you were seeing the price, the price fell from top to bottom and from where the price bounced back, then we basically talk about the last swing. Now if someone is looking here, then this is the last swing for him and this is a good support.
How do you know? Because before this, the price had taken support at a similar level. So from where the price fell and started rising, we can go here and plot a horizontal line.
As we have done, then you will put a line herein this way. So what happened for you? This is a support. Similarly, the price starts going up from here and from where it fell, then you are looking at this place exactly the price got a rejection, then the price started coming down, then this is a resistance for us and at a similar place, you see the price again went there and got resistance again. Now this happens, we are identifying support and resistance by looking at the price action.
Here, now see, if the price would have given a breakout from here, see how many green candles have been made together. Now if the price would have given a breakout from here, then I would not have taken a trade on the breakout. I will tell you the reason for that. I have put another line above, which is at the level of 17200. So why did I puta line above 17200, I will tell you the reason for that. Herein have not put this line by looking at the price action. I have put this line by looking at some other data. Because according to me, this is a very strong resistance zone. Here the sellers are sitting according to me.
Now according to me, I am not assuming myself, I will show you how they are sitting. So if the price would have gone up from here, then I would have waited for a good candlestick to be made.
Example, Shooting Star would have been made. So I would have traded Shooting Star. In this zone, there was no trade zone for me. Some people will say that buy from support and sell in resistance. It is a very small zone to trade. We have not come to the stocks yet. We will also talk about the stock. So when the breakout will come, then you should know about the breakout. Breakout is not a false breakout for you. And after the breakout, will it not give a reversal? Now we are talking so much in one blog.
My job is to explain the concept, so I will do it. Now let’s come to the NSE option chain. Now you see how I assumed that the sellers are sitting there. I did not assume; I saw the NSE option chain. I saw 17200, see the open interest here.
There is an open interest of 2,39,000 quantities. Such a big open interest is standing here, that means the call writers are sitting here. They will not make their loss and the price will not go above it. And you see in a glimpse, you can see that there is a heavy quantity at 17300 and 17250here. OI 1,36,000, 1,94,000, then 1,78,000. So there is a strong open interest here. See hereto, there is a quantity of2,99,000 at 17500. But what is important for me first? The nearest strike is from here, on that 2,39,000 quantity of open interest is standing here’s it is difficult to go above 17200. If this is difficult, then what is the point number1, point number 2. If look down, support, then there are 1,65,000 quantities at 17100.Now you see, you can take out the range of the market yourself.
There is resistance at17200, there is support at17100. The market will be in the middle of it. So was the marketing the middle of it? See, now we are talking about support at 17100. Where did the market get support from? Sowed saw the price action. But the price will fall here. You already knew this by looking at the NSE option chain that there are sellers here, they will not make their loss. Price will go below it and it is difficult to go above 200. Now look at this zone, around the price of 17100, the price comes down and the price bounces back. So the price was raised with support and now what is the important zone for you? There is no big move yet. Where am I expecting the move? I am not trading the breakout, so would trade the breakdown? Breakdown, let’s understand this breakdown. Now if you see the heavy quantity here, then look at this side.
This side is 17100 with 1,65,000 quantity, but on the other side, there is 1,91,000 quantity. Here, the nearest strike price hasbeen the highest, which should have happened. Here, this support is weak. Why is it weak? Because sellers are already sitting at a strike of 17000 with 1,91,000 quantities. So there are more sellers at 17000and from here, what I am seeing from the morning, now I am making this blog later, so I am telling you what we have seen in the market. Sellers have run from here too. So I say when the seller starts running with the lungi and the volume starts shifting there at some other strike price, then understand that the price can also shift. So what is important is the running of the sellers.
If there was a breakdown here, then I understand that the support is weak. So the breakdown was important for me. I know there are chances of reversal on the breakout, but if the 17100 breaks on the breakdown, then the next support is of17000 and here we are talking about the 100-point movement in Nifty. What do you understand? You have to understand within the stocks, I will tell you tattoo. So if you see in Nifty, now you see the volume here was in the quantity of 39lakhs, it is almost around40 lakhs, but here the volume was less. If the volume increases at the strike price of17000 and it comes, then it is already more. So there are a lot of chances that the price moves to the second strike price. I hope you are getting the concept. If you are not understanding the concept, the blog is available for free.
You can watch it on the internet many times. And if you like this blog informative, then do share it. I will be useful for many people. Now here I am doing analysis on upshot. Let’s move forward. Okay, so you might have understood the concept up to this point. Now we are talking about how to identify stocks. For this, I recommend an app. The name of this app is concept.
There are many features that are paid too. You will see a promo code on the screen. VIP offer. Youkan apply this promo code if you take any paid plan. Now I start here and take you to the important concept. Nowhere you are seeing, I have a lot of things here. You might be confused because there are a lot of tools inside. But now we are going to understand triggers. Now what I will explain to you about triggers, there is one important thing before this. I was a Littlemore focused on the breakdown. This focus did not come just like that. I saw the NSEoption chain. I saw one more data.
Before that, I will explain to you, then I will tell you how to identify the stocks. This is known as built up. Seamy focus went there and if you are ever confused in finding, then you can go here and search. See I put buildup, so built up search is done here. Now I am going to future I in built up. Now see what is happening here. This share has opened. I put nifty here’s now we see nifty. No-win nifty you can see a lot of red. You can see red, then you can see pale color like something. Then you can see green. You can’t see blue. Now will tell you what it is. Basically, you have to understand the concept. This is made up of future data. So what is this concept? You basically know Dow theory. I hope you know. The price never goes up in a line. How does the price go up? It goes up and then it goes down. Then it goes up and then it goes down and then it goes up. So what is the concept? First someone buys.
If someone buys, then it is called long. When someone buys stock, let’s say someone buys a stock, he buys for 100 rupees and it becomes 120.He wants to book a profit. So when he will book a profit, then the price will come down little and what we call itis long unwinding. But the price comes down on long unwinding, but it does not mean that there is no bullish move. Then when the price comes down a little, many other buyers get the opportunity to buy and it is long again. Then there is profit booking, then long unwinding and then long. This is a cycle. Similarly, there Isa cycle that there Isa short in the first market, the price goes down, then short covering comes, means profit booking comes, the price goes up, then it goes down, then it goes up, then it goes down and it keeps falling like this. This cycle is beautifully represented in four colors.
So what is the cycle? The blue color should come with green. If the blue color is coming with green continuously, it means green blue green blue, what will it mean? Or two times green came, then blue came, then two times green came, then two times blue came. What does it mean? The cycle is running in the market, the market can be bullish, but here you are seeing a lot of red. I don’t need to tell you. So if you are seeing big red bars, you are seeing big histograms, then here you are seeing red bars. What does it mean? There was a short in the market, there was a short, there was a short, there was a short, there was a short, means hair is constantly selling. There is a constant selling in Nifty and when the price is going up after selling, then what do you have to understand?
I will talk about this on the green, then see again the pale came. What is this pale? The price went up, but this was profit booking. Then the price went down and then the price went up. What is this? This is short covering. Looking at this, I get a view that the market is not bullish. Now what is the significance of green? We will not see this with OI, we will see it with absolute OI. Then you will understand that Avery big buying has not come. This is a very small buying and bigger than that is selling. So if I see here, then what cycle is going on here? Red short covering, sell short covering, sell short covering. What does this mean? This means that my view is about the market that the price is not going to increase. Nifty is not in the mood to increase. From here, the market is still in the downtrend.
This is telling me the data of the build-up. It is very important data, very important. You will get a view about the market. What is your view? Now when you have a view, then you will identify the stocks. Now why was it necessary to tell this? Now you will ssunderstand. Now we come to the triggers. So now we were talking about triggers. This trigger is an important concept. This is a very important concept. We will talk about it. So these triggers are basically coming in the stocks. Those stocks that are being traded in options. Now what do you see here? There are many things here. You may not be understanding. This is call difference; this is put difference. I will tell you one bone. You will understand 100%.
So here I will click on put difference. So as soon as I click on put difference, what does it mean? I will tell you. See, first it was white, then it became green, then it is going to minus from green and it came to zero. So for example, this is PNB. This is PNB Bank, Punjab National Bank. So what it wants to tell you is that its price is running at 48 and its support is how itis coming out? At which strike price are the most put sellers? That is 48. So at the strike price of 48, the most put seller is there and the price has reached there. It means it is on the verge of breakdown. This 0% is the difference between the price and the strike price where the sellers are there. How much difference is left in that? So all these green ones are potential.
But my attention will not go to PNB now. Why? Because here 1.48%is positive and I want negative. So I will find a stock where it is negative. So I will not consider this stock now. Okay, let’s see some other stock around it. See this, this NTPC, I am seeing strong stock again. I will tell you about it. Its price is running at 175. Its strikes 175. It has almost reached the verge of breakdown. Now why am I saying breakdown again and again? Because I just saw the view, I am seeing the downside moves. I am not seeing the upside. I am seeing the upside moves. I want those stocks that can break because the overall view of the market that I am seeing, I am not seeing it positive.
That’s it. So that’s why I am looking for such stocks. Now if am looking at NTPC, then here 16% change in open interest in minus. It means theseller is running with his lungi.Now I will show you how to see this. Now you will click on NTPC, here you will open the open interest chart. As soon as you open the open interest chart, see here, here you are seeing more green line or more red line. First of all, you have to tell what is this? This is open interest basically. Now what do you know from here? I try to explain to you. If the green line is more and strong, it means the resistance is strong. The chances of going above the price are slightly less and if you see more red line, it means the chances of going below the price, like now the red line is less, it means the chances of going down can increase because if this support breaks down here, then the supports not strong.
The price can fall a lot. Here a free fall canals come because there is no support below. There is no support, there is no buy ads. The support zone is visible and if the seller is leaving his position from here, what does it mean? He knows something that we do not know, which is real money. This one stock, there is no recommendation. I am not giving you any recommendations. Today you are reading this blog, maybe after one year you are reading this blog, then at that time you will have to see that this similar concept is happening in which stocks. Here Nifty will also come. If the trigger comes in Nifty, the trigger will come in Bank Nifty, then it will also be identified in the same way. Okay, we will go back again.
One minute, we have to go back to triggers. So we got triggers and see more things in the same way. I come again. Now you take more options here. So we are looking around 0% because we are looking at which is standing around the breakdown. So let’s take one or two more here and what is in minus means that the breakdown has been adjusted. Look at the example here, this is Infosys.
Now this trigger came yesterday of Infosys, although you understand the trigger, then I will tell you. Here, open interests shown on a daily basis, so it is important for you to understand this. At 1400, the maximum put writers were here, the price has fallen, the breakdown has happened. We are just understanding open interest. Look at it once and tell me, the resistance is strong. Support is strong. Resistance is strong. In such a large quantity, call writing is happening above, means there is a higher chance of falling below the price and the breakdown has already happened. If it breaks its support, then it will go straight to the other support below and there is nothing in between.
And if there is so little support, then there is a higher chance of falling price. You will trade by looking at the data, you will not trade in the market. So you are understanding where you need to pay attention. Similarly, youkan search for any other stock. If we want to see Nifty in this way, open interest, sorry opened Nifty again. So if we want to see Nifty, we can see it in Nifty. What do you see in Nifty? You see a fight, but sometimes you will understand what is happening below. Now what is important here? The important thing is this unwinding.
This put unwinding, if you see here, this is a very big support, here the box isstarting to form, means unwinding, if this unwinding becomes so big, it means that the put writers are afraid. If they are afraid, then it means that there is a chance of falling price. Similarly, call unwinding has happened in this option, but if there is an addition in green, this green is getting strong, it means that the addition of calls is happening here and the resistance is getting stronger and stronger. So that’s why you don’t see big moves in Nifty because you can’t clearly see which side is stronger and then how big moves breakdown and breakout can give, I told you that you will get in stocks. So let’s comet stocks again.
Let’s talk about some other options. Example, today we have seen move of Heels, so I come to this and Heels, so look at this beautiful, so look at Heels, here the price is a little far, but what data did I see in Heels, so I told you, change in open interest minus20%, 20% put writer is running, why? Look here, the price is1195 and the maximum strike price is 1180, 1% is still far, 1.3% is far, but if this strike breaks, whose chances are more, because this is a very big number, 20% put writer is running, look, open interests open, so what is here, look at this, the unwinding of put an
d the addition is happening inside the call, what does it mean? Resistance is strong
and once I see, I know that the green is stronger than the red, the green is stronger, the resistance is strong and look inside the put, the unwinding has happened here, where the price is at the moment, the unwinding has happened there, the unwinding has happened below it, the unwinding is going on here too, it means that the put writer is running and the put writer is running, what does it mean? Put writer is running, means if there is a breakdown from here, then there can be a big move expectation.
Now in this blog, I have told you about triggers, now as I told you similarly that the downside, sometimes it will happen that you will see the market bullish, you will see the buildup, it is bullish, so at that time you will see on this side, you have to see the same way on this side, you will see the same way on this side, like you will see, there is another example, you see DABOR, so Debris showing you that the strike price is 540, where the maximum is high, so we are not talking about reversal, so if the OI is high, means the resistance is strong, then the price can fall again from there, so this is a different thing, but what we have to see, where, like look inside Gale, so the price of Gale is running around 106,105.95 and what is the strike where the maximum call writers are 106 and from
here, so if I open its chart, so now what is seen here, where the price is, now the maximum support is below, here the expectation is more on the top, because here you see, how big unwinding has happened, unwinding has happened here, so unwinding is happening here, it can be a big trigger, but now my view is not up, so I may not take this trade, but you can, now we are talking about stocks, some stocks will go up even if the market falls, so this is definitely up to you, but my job is to clear the concept for you.
Now in this blog, we have talked about Nifty, we have told you that how you can identify potential breakout and breakdown stocks and when the number of Nifty and Bank Nifty will come in the same way, then you will be able to search here, you will also see Nifty and Bank Nifty, so if you see here inside Nifty, then which strike price is the maximum OI standing, you have seen this option on the chain, it is standing at 17000, now 1% is far, but here 6% minus, here put traders are running, here addition is happening, we are talking about Nifty, the day I am making this blog, so you are seeing the data, if it goes to around17000 price and there Isa breakdown from there, you will go a little intelligent, you will get to know when itis the right time to trade, which thing, you have to trade in index, you have to trade-in Nifty, you have to trade in Bank Nifty, you will get to know, similarly you have to trade in Bank Nifty, which strike price is the maximum, 39000,now the price is above40100, so when it will come to 39000, here you will see it is in minus, means unwinding is happening inside put side,
then you will understand it can be a potential breakdown and same goes for the breakout. I hope you like this blog, nowhere is a next part of this blog, today I have told you only about intraday stocks, let’s talk about some bigger moves, we have talked about up to 5% move, I am going to tell you in the next blog,20% 25% move, how can you capture it in a positional trade, will be very interesting.