What is the Timing for Intraday Trading?

Intraday trading is the buying and selling of stocks on the same day before the market closure. It’s one of the short-term strategies to generate possible gains. Whether a person is a pro or a beginner, keeping an eye on the trends and indicators is always valuable for intraday trading.

Time plays a crucial role in this kind of trading and hence it is crucial for a trader to be aware of the intraday trading time to plan, research and gain returns. Decisions need to be taken quickly keeping the time factor in mind. It gives a trader an idea of the bigger picture. It isn’t only about the hours at which one should trade but it also enables the strategic planning of the same.

Intraday Trading Time in India

Intraday trading is undoubtedly one of the most interesting categories in the stock market but at the onset, there can be too many questions running through one’s mind. For example, how to do intraday trading, which is the best time to trade, and so on. As the buying and selling happen on the same day in intraday, it needs to be done within the stock market hours. Therefore, the intraday trading timing starts at 9:15 AM and can be executed till 3:30 PM on all days (except Saturdays, Sundays and on holidays declared by the Exchange in advance). Even though it theoretically ends at 3:30, one never gets to trade till the last moment. Brokers square-off the positions 5 to 10 minutes before 3.30PM.

Intraday Commodity Trading Time

The timings mentioned above are for the equity segment. The intraday trading time for commodity trading is different, they are much longer. If you are thinking of trading in commodities like crude oil, silver, gold, etc., then you need to follow these timings.

Commodity category Opening time Closing time

Non- Agri (Internationally referenced) 9:00 AM to 11:55 PM

Which Time Frame Chart is Best for Intraday Trading?

In India, the markets are open from 9:15 AM to 3:30 PM. The aim of an intraday trader is to find a favorable setup, take the trade and make an exit on the same day. For such kind of trading, it’s very important to keep a close watch on the market trend and volatility. Markets keep fluctuating with news flows and a favorable trading opportunity might appear anytime.

The best time for intraday trading is therefore subjective. There are few insights though with regards to certain timeframes that can be helpful. For example, the early session of the market between 9:30 AM to 10:30 AM shows the below features:

a) During this time, the liquidity of the market is higher, which provides an easy entry and exit in the stocks for intraday traders.

b) The volatility tends to be high in the early hours of the market and this plays a vital role in intraday trading.

Experienced traders usually like to make the most of the initial fifteen minutes of the market. If you are new to the market, it’s better to make observations initially before taking trading decisions.

Technical analysis plays a crucial role in intraday trading as it helps a trader to determine the entry and exit points and increases the chances of making possible profit. Usage of 5 minutes & 15 minutes chart is suitable if you are doing day trading. That way you can closely keep a track of the market trends. Furthermore, for a better understanding, you can analyzethe daily chart over different time frames to gauge the broader trend.

Best Candlestick Time Frame for Day Trading

Intraday trading is all about small price fluctuations, therefore traders prefer the 5-minute candle chart or the 15-minutes candle chart. The charts portray the trading activities of the last 5 and 15 minutes respectively based on which you’ll carry out your trading activity. Hourly charts may also give a glimpse of the broader market trend.

Intraday Trading Square-Off Time

By now we know that intraday positions can be held for only a day. Hence, it’s crucial that you square-off all your open intraday positions before the market closes for the day. The intraday open positions get squared off automatically if you fail to do so. The time for the intraday square-off usually ranges from 3:15 PM to 3:30 PM. So, make sure you’ve exited your current positions prior to that.

Conclusion

It’s important to be aware of the intraday trading time if you wish to make the most of the available time. Intraday traders generally prefer the early morning market hours due to the high volatility and liquidity. Even though there’s no thumb rule for that, still it’s crucial if you strategize and keep an eye on the best time.

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FAQs on Intraday Trading Time

Intraday positions are auto-squared off by 3:20 PM.

There is no straightforward answer to this. A lot of scenarios (eg. Previous night’s news, geopolitical events, stock-specific news, etc.) determine the timings once the markets open the following day.

Post-market orders are allowed for equity trading. You have to place an After Market Order (AMO) on the trading application. The same will get executed at market price when the market opens.

Almost anyone can trade in pre-opening session, however it’s not something provided as standard by stockbrokers as market volatility is a lot higher due to low volume.