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Knowing the right time to enter and exit trades is essential to intraday trading success. Stock market doesn’t behave the same way throughout the day.
Different hours show different patterns and understanding these can help traders make better decisions.
What is the Timing for Intraday Trading in India?
Intraday trading in India takes place during regular stock market hours from 9:15 AM to 3:30 PM, Monday to Friday (excluding market holidays). All buy and sell orders must be completed within this time frame on the same day.
Timing is crucial in intraday trading. The market is often most volatile during the first hour (9:15 AM to 10:15 AM) and the last hour (2:30 PM to 3:30 PM). Many experienced traders focus their strategies around these high-volume periods to capture quick price movements.
It’s important to track both the market opening trends and closing sentiments when planning your trades. Also, keep an eye on news updates, economic data releases and global market cues, as they can affect intraday price action within minutes.
Suppose a company reports strong earnings before the market opens, its stock may surge right after 9:15 AM as traders rush to buy. On the flip side, negative news can trigger quick sell offs.Seasoned traders often take advantage of this volatility to make quick gains. But beginners should wait and watch. Jumping in too early without a clear trend can lead to losses.
Intraday Trading Time for Commodities
Unlike equity markets, commodity markets in India offer extended trading hours. For example, non agricultural commodities such as crude oil, natural gas and gold can be traded from 9:00 AM to 11:55 PM on weekdays.
This longer trading window allows traders more flexibility to react to global price movements and news as these commodities are influenced by international markets.
Understanding Intraday Settlement Time
If a trader does not close their intraday position before the market closes at 3:30 PM, the broker may automatically square it off at the prevailing market price. This is done to prevent open intraday positions from carrying forward, as intraday trades are meant to be closed within the same trading day.
However, this auto square off may result in losses if the market price moves against your direction. Traders also risk additional charges from the broker for not exiting on time.
Types of Intraday Trading Charts
In intraday trading charts play an important role offering clear visual of price movements, helping traders make informed decisions in real time. By using the right chart type, traders can spot trends, entry and exit points and manage risk better. Here is a look at the most commonly used intraday charts and how they can help.
- Hourly Charts
Hourly charts split trading day into one hour intervals. They’re useful for traders who prefer to follow broader price movements rather than make frequent trades.
Use Case: If a stock shows a pattern of higher highs and higher lows on an hourly chart, it may signal an uptrend. Traders can use this information to plan long trades or trail stop losses.
Best For:
- Spotting medium term intraday trends
- Identifying momentum across the day
- Setting support and resistance zones
- 5-Minute Charts
5 minute chart is one of the most commonly used by day traders. It offers detailed insight into short term price action and is ideal for quick decision making.
Use Case: If a stock suddenly shows a price spike along with high volume on a 5minute chart, it may indicate a breakout or strong buying interest. Traders can act quickly based on such moves.
Best For:
- Scalping or short term trades
- Spotting immediate support and resistance
- Tracking intraday volatility
- Candlestick Charts
Candlestick charts are widely used in technical analysis due to the depth of information they provide in a simple format. Each candlestick shows open, high, low and close prices for a specific time period.
Use Case:
- Reversal Patterns: Patterns like Doji, Hammer or Shooting Star can signal a potential change in trend.
- Market Sentiment: Green candles suggest buyers are in control, while red candles indicate selling pressure.
- Breakouts: A bullish engulfing pattern near support might signal the start of an upward move.
Best For:
- Pattern recognition
- Entry/exit timing
- Reading buyer-seller strength
Best Time Frames for Intraday Trading
Intraday trading success often depends on choosing right time to enter and exit the market. Here’s how the trading session typically breaks down:
- Morning Session (9:15 AM to 10:30 AM): This period is marked by high volatility as the market reacts to overnight global cues and early news flow. It’s ideal for momentum trading, where quick price movements can be capitalised on for shor term gains.
- Midday Session (11:30 AM to 1:30 PM): Market activity usually slows down during this time and prices tend to stabilise. It’s a good window for traders using trend following or range bound strategies, as the market often consolidates.
- Afternoon Session (2:00 PM to 3:15 PM): Volatility picks up again as traders adjust positions before the market closes. This is a key period for identifying end of day trends and making quick trades based on late market movements.
Final Words
Success in intraday trading largely depends on timing and understanding the best hours to trade, reading charts effectively and recognising how the market behaves at different times of the day can improve your decision making. Combine this knowledge with discipline and risk management to increase your chances of making profitable trades.
Frequently Asked Questions
How do you select stocks for intraday trading?
Choose stocks that are highly liquid and show good price movement throughout the day. Look for stocks with clear technical chart patterns and align them with your trading plan.
How important is timing in intraday trading?
Timing plays a critical role in intraday trading. The market is usually more volatile between 9:15 AM and 10:30 AM, offering potential quick gains for experienced traders. Midday trading (around 11:00 AM to 2:00 PM) tends to be more stable, which may suit conservative strategies. Picking the right time to enter and exit trades can make a big difference.
What is intraday trading time in India?
Intraday trading in India takes place from 9:15 AM to 3:30 PM, Monday to Friday. All buy and sell positions must be completed within this time frame, as intraday trades cannot be carried forward to the next day.
What is the intraday closing time?
The official market closes at 3:30 PM but many brokers start auto square off of open intraday positions between 3:15 PM and 3:20 PM. This is done to reduce the risk of open trades at market close.
Happy investing and thank you for reading!
Disclaimer:
This website content is only for educational purposes, not investment advice. Before making any investment, it’s important to do your own research and be fully informed. Investing in the stock market includes risks, and you should carefully read the Risk Disclosure documents before proceeding. Please remember that past performance doesn’t guarantee future results, and due to market fluctuations, your investment goals may not always be achieved.
