Intraday Stock Chart Strategies for Indian Traders

Intraday Stock Chart Strategies for Indian Traders

ByMatthew Wright

Intraday trading in India requires precision, speed, and a solid strategy. While market noise can be overwhelming, chart-based strategies help traders focus on real-time price behavior to make accurate decisions. Whether you’re trading NIFTY 50, Bank NIFTY, or mid-cap stocks, mastering intraday stock chart strategies can significantly improve your win rate.

This guide explores actionable intraday strategies tailored for Indian market conditions.

1. Use the Right Timeframes

Choosing the correct timeframe is critical in intraday trading.

  • 1-Minute & 5-Minute Charts: Ideal for scalping or very short trades
  • 15-Minute Chart: Most commonly used for strategy execution
  • 30-Minute & 1-Hour Charts: Best for understanding broader intraday trend

Tip: Start by analyzing the 30-min or 1-hour chart to get the trend, then use the 5-min or 15-min chart to time your entries.

2. Opening Range Breakout (ORB) Strategy

This is one of the most popular strategies among Indian traders.

  • Identify the high and low of the first 15 minutes after market open (9:15–9:30 AM IST).
  • Buy if price breaks above the high with volume.
  • Sell if price breaks below the low with volume.

Works best on: High-volume NIFTY stocks and Bank NIFTY.

3. Moving Average Crossover Strategy

This classic trend-following strategy helps spot momentum during the day.

  • Use Exponential Moving Averages (EMA):
    • 9 EMA (short-term)
    • 21 EMA (medium-term)

Buy Signal: When 9 EMA crosses above 21 EMA
Sell Signal: When 9 EMA crosses below 21 EMA

Tip: Confirm crossovers with volume surge for reliability.

4. Support and Resistance Bounce Strategy

  • Plot intraday support and resistance zones using horizontal lines on 15-min or 30-min charts.
  • Wait for price to test these zones and bounce with confirmation (e.g., bullish engulfing candle or hammer).

Ideal for: Range-bound stocks during non-trending sessions.

5. VWAP-Based Strategy

The Volume Weighted Average Price (VWAP) acts as an intraday trend reference.

  • Bullish bias: When price stays above VWAP
  • Bearish bias: When price stays below VWAP

Entry Tip: Enter in the direction of VWAP only when supported by a strong candlestick pattern or indicator.

6. RSI Divergence Strategy

Relative Strength Index (RSI) is great for identifying trend reversals.

  • Bullish Divergence: Price makes a lower low, RSI makes a higher low → Buy signal
  • Bearish Divergence: Price makes a higher high, RSI makes a lower high → Sell signal

Recommended RSI setting: 14 period on 15-min chart

7. Breakout + Retest Strategy

  • Look for a breakout above resistance or below support on high volume.
  • Wait for a retest of the breakout zone.
  • Enter only when price resumes in breakout direction with a confirming candle.

This strategy reduces false breakout risks.

Risk Management Tips for Intraday

  • Always use stop-loss (e.g., 0.5% to 1% of stock price).
  • Trade with a 1:2 or better risk-reward ratio.
  • Avoid overtrading — stick to 1–3 high-quality setups daily.
  • Exit all trades before 3:15 PM IST to avoid volatility.

Conclusion

Intraday trading is not about chasing every move, but about executing high-probability setups based on solid chart strategies. Indian traders should focus on simple patterns, confirm with volume, and maintain discipline. With practice, these strategies can help you trade more confidently and profitably.

FAQs

Q1. Which chart timeframe is best for intraday trading in India?
The 15-minute and 5-minute charts are most popular among Indian intraday traders.

Q2. Is VWAP useful for intraday trading?
Yes, VWAP helps identify trend direction and good entry/exit zones within the day.

Q3. Can beginners follow intraday strategies successfully?
Yes, with proper practice, backtesting, and risk management, beginners can trade effectively.

Q4. What stocks are good for intraday trading in India?
Focus on high-volume, high-beta stocks like Reliance, HDFC Bank, TCS, or sector leaders.

Q5. Should I use indicators or just price action for intraday?
Start with a combination of both, and simplify your approach as you gain experience.