What is the Timing for Intraday Trading?

The intraday trading time in India is from 9:15 AM to 3:30 PM. Buying and selling financial products during the same trading day is known as intraday trading or day trading. In contrast to long-term investment, intraday trading requires exact timing and a thorough understanding of market fluctuations. Identifying the best trading times of the day is one of the most important components of effective intraday trading. In this blog, we will discover everything about intraday trading time, the best time frame for intraday trading, intraday square-off time, intraday closing time, and a lot more. 

Stock Market Timing in India

The hours of the Indian stock market are from 9:00 am to 3:30 pm. Pre-open orders can be made during this period, which is utilized for price discovery, from 9.00 am to 9.08 am. Here, orders are matched at 9.15 in bulk rather than in real-time. Every day at 9.15 am, real-time trading typically begins. The contract price will be the day's closing price during the post-close session, which is open after the trade concludes at 3.30 p.m. The loudness is restricted in this window.

Ideal time frames during the day for intraday trading

Although intraday trading is unquestionably one of the most fascinating areas of the stock market, there may be too many questions arising initially. For instance, the optimum time to trade, how to do intraday trading, and so on. Since intraday timing in India involves buying and selling on the same day, it must be done during regular stock market hours. 

Therefore, on all days (apart from Saturdays, Sundays, and holidays designated in advance by the Exchange), intraday trading time can be conducted from 9:15 am to 3:30 pm. Although the trading session is supposed to stop at 3:30 pm, it never does. Five to ten minutes before 3:00 pm, brokers square off the positions. 

Types of Intraday Trading Charts

Following are the types of intraday trading charts:

Line Charts

The most fundamental kind of chart utilized in intraday trading is the line chart. They display the closing prices over a certain time frame with a line linking each closing price. This kind of chart helps determine a stock's general trend.

Bar Charts

The open, high, low, and close prices for a specific period are shown in bar charts. Every bar depicts a single period and has horizontal lines displaying the opening and closing prices on either side or a vertical line representing the price range.

Candlestick Charts

Bar charts and candlestick charts are similar, although they employ different visual aids. The open, high, low, and close prices for the duration are displayed on each candlestick. The wicks display the high and low values, while the body of the candlestick shows the difference between the open and closed prices. Because they make it simple to understand price patterns and fluctuations, candlestick charts are widely used.

Point and Figure Charts

Point and figure charts ignore time in favor of focusing on price changes. Without the noise of time-based movements, it is simpler to spot significant price trends and reversals when they employ Xs to represent rising prices and Os to signify dropping prices.

Intraday Trading Square-Off Time

As you understand, intraday positions are only valid for a single day. It is therefore imperative that you clear off any active intraday trades before the market closing for the day. If you don't, the intraday open positions are automatically squared off. The intraday square-off typically takes place between 3:15 and 3:30 pm. Thus, ensure that you have left your existing roles before the dedicated time.

Intraday Trading Window Availability

Although intraday timing is supposed to conclude at 3:30 PM, you can't start trading until then. What time does intraday trading conclude then?  

If you designate your order as an intraday trade, the broker will wait until approximately 3:15 pm or 3:20 pm (this time may vary depending on the broker's risk management policy), and if the order is still open at that time, the risk management system of the broker will automatically close all open intraday positions at the market price. As a result, you can open and close orders throughout the day from 9:15 pm until around 3:15 pm.

Time for Intraday Commodity Trading

The above-mentioned timeframes apply to the equity component. Commodity trading has a separate, considerably longer intraday trading period. You must adhere to these timings if you plan to trade commodities like crude oil, silver, gold, etc. 

Commodity Class Opening Hours and Closing Hours

9:00 am to 11:55 pm Non-Agriculture (Internationally referred).  

Should I Trade in the First Fifteen Minutes?

The market hours in India are 9:15 am to 3:30 pm. An intraday trader's goal is to identify a promising setup, enter the trade, and close it out on the same day. 

This form of trading must maintain a careful eye on market volatility and trends. Markets are constantly changing due to news flow, and a profitable trading opportunity might arise at any time. 

There is no objective ideal timing for intraday trading. However, there are a few perceptions about certain historical periods that might be useful. For instance, the market's early session, which runs from 9:30 am to 10:30 am, exhibits the following characteristics:

At this time, the market's liquidity is stronger, making it simpler for intraday traders to buy and sell equities.

Early in the market's day, volatility is frequently strong, and this is important for intraday trading.

Most often, seasoned traders choose to maximize the first fifteen minutes of the market. It is preferable to first make observations before making trading decisions if you are fresh to the market.

Technical analysis is essential to intraday trading since it aids in identifying entry and exit opportunities and raises the likelihood of a probable profit. Use of the 5 and 15-minute charts is appropriate if you are day trading.  

In this manner, you may closely monitor market developments. Additionally, you may examine the daily chart over several periods to determine the overall trend for a better understanding. 

Day Trading's Ideal Candlestick Time Frame

Since minor price changes make up the majority of intraday trading, traders like the 15-minute or 5-minute candle chart. The charts show the trading activity for the last five and fifteen minutes, respectively, and are the basis for your trading activity. Hourly charts could also provide a hint as to the general market trend. 

Conclusion

If you want to make the most of the intraday trading time available, it's critical to be aware of the intraday trading period. Due to the high volatility and liquidity during the morning market hours, intraday traders typically favor these times. There is no general guideline for it, but it's still important if you plan and pay attention to the optimal moment.