By the way, the information that you are going to get from this video is going to be very useful in your life. See, our topic today is how to choose the best stock for intraday. Now intraday means that you buy it in one day and sell it the next day. Actually you can also buy it by selling it. Now whether you trade in options or futures or just in intraday, the information that you are going to get in this video is going to be very useful for you. So in this video we are basically going to identify stocks, such stocks in which you can see big moves. We are talking about the same in just one day, in intraday as well. See in stocks you understand that good moves can come in just one day. When we talk about Nifty, Bank Nifty or Fin Nifty, then we definitely say that if there is a move of 1% then it is a very good move. If there is a 2% move then it is a very big move but the stock can have a 3, 4, 5% move in a day and just think if the stock has a 5% move, a 3% move 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. What you are going to learn today, now you can use it in index or in stock. It is important to understand the concept.
Now, what is the concept? Now, you all know that a lot of money is made when either there is a breakout in the price or there is a breakdown. Now, what is this breakout or breakdown? You guys 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 breakout moves come then there are very strong chances of making money and when breakdown happens then also there are chances of making money but if you rely only on price action then on the basis of price action we see that many times the price went up but it turned out to be a false breakout. The price rose but then it rose and then came down again. Actually in this video I am also going to tell you how you will identify a false breakout and similarly when there is a breakdown then the price goes down and then bounces back. Now how will we know this and we have come to a correct conclusion, we identify such stocks and I will tell you this first of all in this video, in a second, as I am telling you in one click, today you will press a button and those stocks will come in front of you, which will be giving breakout or breakdown, you will know and you will be able to identify them and the logic behind this, I will first tell you why we can trade here, how can we identify the best stocks and you will also know when you are going to get a breakout in Nifty, when you are going to get a breakout or breakdown in Nifty and where the big move is expected. So the concept that you must be understanding till now will 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 will be many people who might be at the beginner level. My job is to cater to everyone, so if you know the basics then wait a little. I am going to explain a lot of things in this video. Now let’s talk about what we basically have resistance and support. First of all I will teach you how to plot on the chart. It is very simple. I will tell you in a minute. So how do we find support and resistance? Let me show you this. Okay, so now we are on the chart. Basically, this is today’s chart of Nifty. 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 the resistance? So here I have placed some horizontal lines for you. Let me 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, so we basically talk about the last swing. Now if someone is looking here, this is the last swing for him and it is a good support. How will you know? Because earlier, the price took support at similar levels. So from where the price fell and started rising, we can draw a horizontal line here. Similarly, the price starts going up from here and from where it fell, then you see that the price got rejection here, then the price started coming down, so this is the resistance for us and at the same place you see that the price again went there and again got resistance. Now this is what happens, we are identifying support and resistance by looking at the price action here. Now see if the price gives a breakout from here, then see how many green candles are formed together. Now if the price gives a breakout from here, then I will not take the trade on the breakout.