[00:00] We don't write like that. Follow the rules. it will definitely trap us.
[00:15] Friends, today we are going to talk about stock selection. when you search for how to select stocks for intraday or swing trading on YouTube or Google.
[00:27] Now, remove them from your mind completely. we should go to NSE and see top gainers and top losers. I have made a video on how to select stocks in Excel sheet using VLOOKUP
[00:44] in the new format that I started. We go to NSE website and see top gainers and top losers We can see the stocks that are changing in volume recently.
[00:58] Or we can download an Excel sheet from there and filter it. we can enter some set of standard commands in the screener.
[01:11] Let's try to get clarity about all these. Because, I have left a concept of how I select stocks. When you are saying something like this, you might think this is the best.
[01:26] I have explained everything related to stock selection from the time I started trading. I will explain why I am not using this method and why I am using this method.
[01:39] First, in today's video, we are going to talk about stock selection related to swing trading. Actually, I wanted to combine swing trading and intraday trading. Everything we talked about will be covered in intraday.
[01:54] I will explain the stock selection method that I personally follow. First, I will clear the concept of swing trading related to stock selection. Then, in the next video, I will explain about intraday related stock selection.
[02:09] In fact, you can use the stock selection related to swing trading in intraday. After watching this video, you should not have any requirement to search about stock selection.
[02:24] I have told you that the videos we are uploading in this channel are our main intention. After doing all this, if you have any question about how to do this in stock market, I will explain every concept clearly with a discussion way.
[02:41] If I explain in one direction, I can upload short videos very quickly. And, I am explaining that concept in another way. It will be boring for those who already have an idea in the market.
[02:56] I have explained this to you as to why the length will increase. This is a part of our equity series beginners course. The first half of chapter 1 and 2 is completed.
[03:10] We will talk about intraday and swing trading. If you want to watch these videos in order from the first, Watch this video after this.
[03:23] if you find our efforts in this video valuable at any point, like our video and try to encourage these efforts. So, if you haven't subscribed yet, please subscribe.
[03:39] With your support, our second channel will reach 3 lakh subscribers mark. I am going to tell you the concept. Note down this type of theme in the book.
[03:56] If you like it and want to practice, you can note it down. I strongly suggest you to look at a book.
[04:08] or if you are trying to note down the things that are mentioned in the book. I personally want to tell you something. Or, I might miss something.
[04:22] I will note down the mistakes that I make in the market, and what we shouldn't do and what we should do. You can note it down and try to change them for your own benefit.
[04:34] We should understand the name of the stock. It is about the strategy of buying and selling. Like, there are Nifty 50 stocks.
[04:50] they will increase or decrease. We should select these. If you get the idea of proper stock selection,
[05:05] enter it, set a stop loss target, our part in the trade will be completed. Is it growing randomly?
[05:19] Or, is there a particular parameter? Why do we select that particular parameter and stock? In fact, there is no need to see it differently.
[05:33] Whenever I share a list of stocks with a particular standard of stocks, stocks with high volumes and high momentum, like how it acts in lower time frames, higher time frames,
[05:49] if you have a complete picture in your mind, If the patterns and support resistance in those are breaking, and you will do Swing Trading in higher time frames.
[06:03] We don't have a set of stocks in our memory. if you follow that process in a standard protocol, as far as I have memory,
[06:18] within six months, As far as I know, you don't need to open some chats at all. it has the same important support below.
[06:32] Just search for that stock in Google, when you keep those charts in your mind, 15-minute or 5-minute chart,
[06:47] you don't need to follow any other stocks. Now, what we are going to do, Intraday will be different in concept.
[07:00] we are going to send some set of stocks Okay, now let's enter into the main theme. how do you understand all the things you have seen till now?
[07:14] Or, if the moving average is below, we can sell it. we can take some parameter, But, believe me,
[07:27] in fact, if you observe big players, in IT stocks or Pharma stocks, Observe this well.
[07:39] you will get more short calls related to IT stocks. We can understand it in the screenshots of big players. I am talking about genuine traders.
[07:53] they should focus on their stocks first. Because we are not trading for a day, right? Let's say,
[08:07] Or, in charts, Let's assume that those important supports have broken. how much probability will there be in trading Pharma stocks with a selling opportunity?
[08:20] Like, support has broken. RSI, MACD, and other indicators have given us further confirmation. If we combine all these, we call it as confluence, right?
[08:35] if we add a strength to the sector, or through global updates, if we see the Pharma stocks purely for the sake of trading,
[08:51] if we take the trades that we are getting, We should first observe the sectors. Swing trading, even if we observe intraday, there is nothing wrong.
[09:04] But, I focus more on the sectors than intraday. If we want to do swing trading, first, we should have an idea of the sector trend. If we try to fear that the Infosys or HCL technology has bullish resistance break,
[09:20] if we break out and go to the top side, So, we should look at the higher time frame and confirm it in the lower time frame. it is important to know the trend of the sector related to the positions you want to build.
[09:38] Focus on the first sectors. I have mentioned some indexes. 17650, 17440, 17250, 17,050 to 80.
[09:56] we should try to analyze at least 5 sectors related to the support and resistance. I am removing everything that I have drawn on the charts.
[10:11] We are going to do a 3-level analysis. In the first level, we will select the stocks related to the sector. In the second level, let's say I have selected the IT sector.
[10:26] We cannot sell the stocks for equity. Or else, we have to buy and sell the options. But, don't think that it is equity.
[10:38] There is no requirement that I don't touch the options in the future. So, if I have a buying or selling opportunity related to the IT sector,
[10:50] Which sector has a good breakout zone for me? After that, I will screen the stocks in that sector. There are many stocks in the IT sector.
[11:03] In some stocks, big players have more interest. which stocks are interested in that sector? Where are the big players building positions?
[11:16] How to know that it is good to do swing trading related to weight? In level 3, we selected the sector and the stock. Finally, how should we be in position before our trade setup?
[11:30] how to justify the price action related to the stock? Actually, the third is the stock related price action.
[11:42] Support and resistance, we talked about everything. So, level 1, sector selection, level 2, stock selection, I will end this video by combining these three things and doing swing trading related.
[11:57] You tell me, you want to do swing trading in IT stocks. Just come to the daily time frame and zoom out a little.
[12:09] Is the IT sector bullish or bearish? After a sort of consolidation, the upside moved in the IT sector. Lower than the previous high.
[12:21] This time, it is falling even more. I am not saying this for investment. we buy good stocks when they come to the downside.
[12:34] We sell it when it goes to the upside. Whether it is going up or down. So, what is the present trend?
[12:46] If it is bullish, can you say? If it is bearish, will we sell it? I am removing the one on the screen.
[13:00] Recently, in IT sector, It took support of 26,425 in 3 times. further, if we see a good candle,
[13:17] We can see the triple bottom break down. If it comes here and goes another time, and if it breaks down the neckline and comes down,
[13:30] So, what we can do now is, So, we should look at it for selling trades. In recent times,
[13:44] In recent days, it is moving positively and stabilizing. The reason for it to be positive without falling even further is,
[13:56] Since it came to this zone, It means, even in related stocks, So, what we can do now is,
[14:08] then we will start the screening related to IT stocks. level 1 will be completed immediately. We will move to the second level for selling opportunity in IT index related stocks.
[14:23] Before going to the second level, What will be the view form when it comes to auto index? I am checking the trend daily.
[14:38] What will you say about the trend related to auto sector? As of now, we can draw a trend line by connecting these lows according to the charts. Still, if it is a trend, it is bullish.
[14:53] Recently, this sector is facing resistance multiple times. if we increase the index to nearly 600-700 points and break out to upside,
[15:07] then we can plan buy entry related to auto stocks. If we draw a trend line by following this, The price is taking support there.
[15:21] So, mostly, we plan buy entries because the overall structure is bullish. we can plan short entries in auto stocks in the recent trend line level.
[15:38] But, mostly, we plan long entries because the index is bullish and the recent price action is bullish. In the Pharma index, after a series of falls in recent times,
[15:52] which has been falling continuously for a long time, If we zoom out a little, we can understand the importance of the lines drawn. Here is resistance, here is resistance,
[16:07] So, this line is visible. If we want to plan buy entries related to Pharma index, But, how is the price action?
[16:20] The index is still saying that it is weak. which is consolidated and recently formed support, we can find opportunities for sell entries in stocks related to Pharma index.
[16:35] Similarly, if you analyze the other sectors like metal, FMCG, and energy, we can get an idea of which sectors are bullish and which are bearish for swing trading. After completing level 1,
[16:49] let's say I want to see sell opportunities related to IT stocks. This is perfectly close to a good level. even if this zone breaks and closes down,
[17:02] So, I want to see IT stocks for sell entries. Because I can't handle sell in equity. So, the next step we have to do is to select some stocks in the IT sector.
[17:18] First, let's talk about which stocks should not be selected. or stocks that are related to companies, or stocks that have uncertainty and have expectations in the market,
[17:33] or stocks that are expected to sell or buy in the event, It should be neutral and influence the market, Next, it shouldn't be a stock that touches the upper and lower circuits.
[17:50] We don't want to trade stocks that are in the upper circuit, Avoid stocks that are in news, stocks that have unusual movement,
[18:04] will make you think that you can earn good money in swing trading, and why will the upside move so much, so avoid trading stocks like that.
[18:20] we need stocks that have liquidity, volume, and volatility. stocks that have the same amount of volume, but don't stay in the same direction.
[18:35] Will we have upper and lower circuits in FNO stocks? So, avoid upper and lower circuits, and we will get stocks that have liquidity, volume, and volatility in FNO stocks.
[18:50] if you want to trade, If you want to swing trade stocks that are not in FNO, You can't do futures or options.
[19:04] you can buy them in the future. I will explain it to the NSE website. Let's say you want to hold large industries for the short term.
[19:19] You have seen the related technical chart. see the large industries in the NSE. Go to historical data.
[19:32] Select it and see the volumes. let's say the price increased yesterday on 30th September. the day when big players will show participation,
[19:48] See the chart. The volume is usual. On 23rd September, the volume was close to 19 lakhs.
[20:01] The number of trades are more than the previous days. after taking the entry on 23rd September, if there is a fall in the market after 23rd September,
[20:17] see the closing prices here. If big players have taken the entry, they will buy the price again and again and support.
[20:31] if you think it is a stock with good liquidity, If you think the price was more important that day,
[20:43] You can see the volume below the stock. we can see the recent volume and the current volume. the stability was mostly in the stock.
[21:01] If the market falls and we fail, But if you want to buy a stock that is not in FNO, then you should definitely check the volumes in NSE.
[21:14] you can see this in the money control. Friends, I want to make this clear. They don't give us a single rupee to promote the money.
[21:29] In fact, we never asked them if we would promote the money. I am telling you not to buy anything related to this. You can see this data in the free websites I am telling you about.
[21:45] After you click on it, you can see Long Buildup, Short Covering, Short Buildup, Long Unwinding. Long Buildup, Short Buildup, Short Covering, Long Unwinding.
[21:58] they put the bullish round in the first round. So, if you want to short the stock, Select these options and come down to the Short Term Outlook option.
[22:14] Note down the short buildup and IT stocks. There is a long unwinding related to the Mind Tree. You can see the different options while scrolling.
[22:27] These two are there. So, we selected Mind Tree and Tech Mahindra. Now, we have to add these stocks in the chart.
[22:43] And, if beginners get confused about what is Long Buildup, Short Covering, Short Buildup, Long Unwinding. then it is called Long Buildup.
[22:56] The price is increasing in parallel. Big players are planning to enter. Are they building positions by combining price, open interest and volume?
[23:11] Or, are they cutting the existing positions of big players and staying bearish? We can tell this based on this OI data. There is a dedicated video related to this in our channel.
[23:24] I explained it very clearly. I selected two stocks and going to the chart. Since we are doing swing trading here,
[23:38] Lower time frame should be a hourly time frame. Please observe the chart here. From consolidation, it is moving from lower highs to lower lows.
[23:56] Please observe the range here. Previously, this range was important as a resistance and support. So, this range is 3160 to 3135.
[24:13] If the price is closing at lower time frames, If it is coming, we have an opportunity to short Mindree.
[24:25] Like, 2750 or 2720. And below that, we have another swing. We can short the price that is coming below 3135.
[24:43] 3281. We will place the stop loss above this swing high. We can exit at the risk reward.
[24:57] This is Mindree. the recent support is the most important. It has acted as an important support previously.
[25:10] it was an important support for Consolidate. 940 is an important support. you should book the profit at 940,
[25:25] Or, when it is coming close to 940, and plan for reversal. we can also book short positions for swing trading.
[25:40] Where you are placing the stop loss, whether it is at the next important level, if we are placing the stop loss from close to close,
[25:54] There should be a proper risk reward. Or, we can place the pivot points like stop loss. So, you will exit at some point.
[26:11] Will you be able to achieve the target with all the points? If it breaks, there will be another support nearby. So, when it is coming to this particular level,
[26:26] the next important level to be taken as the target is this level. Here, we are getting 30,30.  60 points.
[26:39] then we can avoid this trade. If it reverses from there, we will get trapped. the target should be convenient for us,
[26:52] Otherwise, we will avoid it. In that sector, we talked about which stocks should not be traded. If you are trading in FNO stocks,
[27:06] check the volumes in NSE. How are the volumes on the day you are taking the trades? then the participation of big players will be visible on that day.
[27:20] Even after the big players enter, But, big players will not enter at once. If they are falling and moving against them,
[27:33] they will be afraid of that as an opportunity. The people who are focusing on a stock, But, if our time is bad,
[27:45] they will lose in the direction we take, giving entry with volumes is a better option in swing trading. come to this opstra website,
[27:58] for the sectors that are looking at the buy side. it will increase the Y and price related to Tata Chemicals and Torrent Pharma.
[28:11] They are building contracts in futures. when the price is increasing. We can see the short covering as bullish.
[28:26] So, select these two related to the indexes that you see as bullish and bearish.
[28:38] We can see this not only in the option but also in the money control. Go to the website you like. Here also, we have to select the stocks that are growing in price and open interest.
[28:51] It will be confusing and difficult to select the stocks that are growing in price and open interest. If you have any other website, you can select from that. I will give you a list of FNO stocks in the first comment.
[29:08] I will tell you the sectors here. IT stocks, Pharma stocks, FMCG, Auto and Metal. We follow Bank Nifty so I am not telling you the banking stocks.
[29:21] There is a list of FNO stocks. Divide the stocks in which sector and maintain them in watch list. If you want to maintain some stocks in watch list,
[29:34] you can divide the stocks from FNO stocks and maintain them in watch list. You can take a trade even if the stocks related to them are breaking. we can't measure the individual price of the stocks in FNO.
[29:49] If the price is moving in equity, it is not bullish or bearish. The people who built positions there manipulate the stock here. They will pump the stock and exit the quantity slowly after the price rises.
[30:06] They are building contracts, short covering and leaving the contracts. It is unusual for retailers to focus on big stocks in futures.
[30:26] if the focus goes to futures, They are increasing the OI data and the price will rise. It is a criteria.
[30:40] Don't think that you can be profitable if you do it. We have to be ready for both. We can balance it only when we can carry it with equal emotions.
[30:53] Divide them and try to divide the stocks in the sector. You will understand the names of the stocks related to sector.
[31:07] You can plan the stocks and sell entry and buy entry before the market opens.
[31:22] I think you understood how to select and trade stocks. My theme is on stock selection in these two videos. I have told you that I don't support resistance to keep it simple.
[31:35] But you can apply any strategy that I have told you. Where is the target after I buy? Does the stop loss have any logic?
[31:48] If you don't look for another 10-15 minutes, you will get a good risk reward. Because the trade might have moved by the time we left. If we are going because it is increasing and it has already increased by 3%
[32:02] If the train moves fast from the station, should we run to catch it? If the stock moves in a momentum, we should try to catch it.
[32:15] If it has already increased by 3%, we should keep the stop loss that much. If the stop loss gets triggered by profit booking, it will change the risk reward.
[32:28] We should be there at the time we leave or it should move slowly. We don't care how much it increases. It is to be in stocks with good risk reward.
[32:43] We should be in the market consistently and disciplined. If we see that it has increased by 5 minutes, or if it increases by 6 minutes, we should avoid the stock that increased last time.
[32:59] We earn money even when we make mistakes in the stock market. We lose money even when we are right. They will protect your capital.
[33:11] If you follow emotions instead of rules, it will trap you. Whether it is news or events, or the market is uncertain, leave the overnight days.
[33:24] it will be a fall in the sector we are in. The next sector will stabilize because the market is falling. Not all sectors should be positive.
[33:38] Some sectors, and some stocks, have a weakness. When there are no events or news, I will update you in the news videos about carrying overnight positions in the market.
[33:52] In such cases, do not carry overnight positions. Because the positions we carry do not work according to the price action we expect.
[34:05] So avoid swing trading when there are events. I will talk about intraday stock selection in the next video.
[34:17] I have mentioned all the important points. Try to maintain a book. You should also note them down.
[34:32] Follow the logic. Why should I look at the stocks while looking at the sector? whether there is a bullish breakout or bearish breakout in the stock,
[34:47] There is no scope for it to trend. When the sector is trending, The trend related to the sector is important.
[35:00] You should know about it. We will cover it in the next video. please like and encourage our efforts.
[35:17] you will find the referral links in the description. you can click on the referral links and open an account.
[35:31] I will see you in the next video. If you liked it, please like our video. please share it and subscribe to our channel.
[35:45] If you find our content useful, I will come back with another interesting video. Jai Hind!