Selecting stocks for intraday trading is a different process than selecting stocks for long-term investments. It is quite different with new rules and selection criteria. So, let us talk about how to select the best stocks for intraday trading. We have several tips to help you choose shares ideal for short-term holding like intraday trades. You can refer to our other articles to learn more about the stock market.

Opt for Liquid Stocks

If you are looking to trade stocks intraday, you need to have liquid stocks. Liquidity is the ability of an asset to be quickly bought and sold without affecting its price. In other words, it means that the volume of a stock will be high enough that you won’t have trouble selling it whenever you want.

Liquid stocks are also more predictable in their price movements than illiquid stocks. The best way to find a liquid stock is by looking at its volume and price history charts. If the volume is high and there’s been little change in price over time, it is a liquid stock worth investing in.

Do Not Choose Volatile Stocks

Volatile stocks can be subject to extreme changes in price even within a single day. You might be taking on too much risk if your portfolio includes these stocks. It’s better to choose less volatile stocks. Your investments will be more stable and less likely to fluctuate wildly during the day.

Volatility can be due to several factors, and one of them is news. For example, a company may announce bad earnings or other information that causes its stock price to fluctuate dramatically. Another factor is investor sentiment. The overall mood of investors can affect how much they will pay for a company’s stock.

Pick Correlated Stocks

Is intraday trading profitable? The answer completely depends on your stock selection strategy. Correlated stocks are the ones that move together. When one goes up, the other one usually follows suit. That means if you buy one of these correlated stocks at the beginning of a trading day and sell it at the end of the day, you’ll probably make money on your investment.

For example, it would be better to invest in companies closely related to the airline industry if you want to trade airline stocks. The same goes for oil companies, technology firms, and so on. 

Watch Out for Market Trends

Stocks that follow the market trend are the best stocks for intraday trading. You can see it by looking at the stock’s movement with the overall market. If a stock moves up or down with the overall market, it is most likely a good stock for intraday trading.

You also want to ensure you are following the right trends and not buying anything that looks like it might be going up. You need to know what stocks are likely to go up or down on any given day.

Look for News-sensitive Stocks

If there’s a news event or even a rumour, you want to be aware and ready to act on it. For example, there may be a merger between two companies or a company announces they’re going to lay off employees or close down an office. These things can affect the stock prices of these companies.

You also want to track what is happening globally that might affect your stocks. Things like natural disasters, political events, and scandals play a part in determining whether or not people will invest in some stocks

Bottom Line

That’s the stock selection strategy you want to implement when dealing in intraday trading. It also bears a lot of wisdom in the realm of long-term investing. Just ensure you’re buying your stocks at a fair price. Anything less, and you’re likely to be selling at a loss.

G.S.R. 913(E).— In exercise of the powers conferred by section 3A of the Government Savings
Promotion Act, 1873 (5 of 1873), the Central Government hereby rescinds with immediate effect the Public Provident Fund Scheme, 1968, published vide number G.S.R. 1136(E), dated the 15th June, 1968, except as respects things done and omitted to be done before such rescission.

[F. No. 2/2/2018-NS (Pt. I)]
RAJAT KUMAR MISHRA, Jt. Secy. (Budget)

Download Notification Click here 

In terms of GoI notification F.No.4(7)-B(W&M)/2019 and RBI circular IDMD.CDD.No.3392/14.04.050/2018-19 dated May 30, 2019, the Sovereign Gold Bond Scheme 2019-20 – Series I will be opened for subscription for the period from June 03 – June 07, 2019. The nominal value of the bond based on the simple average closing price [published by the India Bullion and Jewellers Association Ltd (IBJA)] for gold of 999 purity of the last three business days of the week preceding the subscription period, i.e. May 29 – May 31, 2019 works out to ₹3,196/- (Rupees Three Thousand One Hundred Ninety Six only) per gram.

Government of India, in consultation with the Reserve Bank of India, has decided to offer a discount of ₹50 per gram less than the nominal value to those investors applying online and the payment against the application is made through digital mode. For such investors, the issue price of Gold Bond will be ₹3,146/- (Rupees Three Thousand One Hundred Forty Six only) per gram of gold.

Ajit Prasad
Assistant Adviser

Press Release : 2018-2019/2831

RBI/2018-19/192
IDMD.CDD.No.3392/14.04.050/2018-19

May 30, 2019

The Chairman & Managing Director 
All Scheduled Commercial Banks,
(Excluding RRBs)
Designated Post Offices
Stock Holding Corporation of India Ltd. (SHCIL)
National Stock Exchange of India Ltd. & Bombay Stock Exchange Ltd.

Dear Sir/Madam,

Sovereign Gold Bond Scheme (SGB) 2019-20- Series I/II/III/IV

Government of India has vide its Notification F.No. 4(7)-W&M/2019 dated May 30, 2019 announced the Sovereign Gold Bond Scheme 2019-20- Series I/II/III/IV. Under the scheme there will be a distinct series (starting from Series I) for every tranche which will be indicated on the Bond issued to the investor. The Government of India may, with prior notice, close the Scheme before the specified period. The terms and conditions of the issuance of the Bonds shall be as follows:

1. Eligibility for Investment:

The Bonds under this Scheme may be held by a person resident in India, being an individual, in his capacity as such individual, or on behalf of minor child, or jointly with any other individual. The bond may also be held by a Trust, HUFs, Charitable Institution and University. “Person resident in India” is defined under clause (v) of section 2 of the Foreign Exchange Management Act, 1999 (42 of 1999).

2. Form of Security

The Bonds shall be issued in the form of Government of India Stock in accordance with section 3 of the Government Securities Act, 2006. The investors will be issued a Holding Certificate (Form C). The Bonds shall be eligible for conversion into de-mat form.

3. Date of Issue

The date of issuance shall be as per the details given in Para 7.

4. Denomination

The Bonds shall be denominated in units of one gram of gold or multiples thereof. Minimum investment in the Bonds shall be one gram with a maximum limit of subscription per fiscal year of 4 kg for individuals, 4 kg for Hindu Undivided Family (HUF) and 20 kg for trusts and similar entities notified by the government from time to time

provided that

1. in case of joint holding, the above limits shall be applicable to the first applicant only;
2. annual ceiling will include bonds subscribed under different tranches during initial issuance by Government and those purchased from the secondary market; and
3. the ceiling on investment will not include the holdings as collateral by banks and other Financial Institutions.

5. Issue Price

The nominal value of the Bonds shall be fixed in Indian Rupees fixed on the basis of simple average of closing price of gold of 999 purity published by the India Bullion and Jewellers Association Limited for the last 3 working days of the week preceding the subscription period. The issue price of the Gold Bonds will be ₹ 50 per gram less than the nominal value to those investors applying online and the payment against the application is made through digital mode.

6. Period of subscription.-

The Subscription of the Gold Bonds under this Scheme shall be open as specified in Section 7 below.

Provided that the Central Government may, with prior notice, close the Scheme at any time before the period specified above

7. Calendar of Issuance.-

8. Interest

The Bonds shall bear interest from the date of issue at the rate of 2.50 percent (fixed rate) per annum on the nominal value. Interest shall be paid in half-yearly rests and the last interest shall be payable along with principal on maturity.

9. Receiving Offices

Scheduled Commercial Banks (excluding RRBs, Small Finance Banks and Payment Banks), designated Post Offices (as may be notified), Stock Holding Corporation of India Ltd (SHCIL) and recognized stock exchanges viz., National Stock Exchange of India Limited and Bombay Stock Exchange Ltd. are authorized to receive applications for the Bonds either directly or through agents.

10. Payment Options

Payment shall be accepted in Indian Rupees through cash up to a maximum of ₹ 20,000/- or Demand Drafts or Cheque or Electronic banking. Where payment is made through cheque or demand draft, the same shall be drawn in favour of the Receiving Office.

11. Redemption

i) The Bonds shall be repayable on the expiration of eight years from the date of issue of the Bonds. Pre-mature redemption of the Bond is permitted after fifth year of the date of issue of the Bonds and such repayments shall be made on the next interest payment date.

ii) The redemption price shall be fixed in Indian Rupees and the redemption price shall be based on simple average of closing price of gold of 999 purity of the previous 3 working days, published by the India Bullion and Jewelers Association Limited.

12. Repayment

RBI/depository shall inform the investor about the date of maturity of the Bond one month before its maturity.

13. Eligibility for Statutory Liquidity Ratio (SLR)

Bonds acquired by the banks through the process of invoking lien/hypothecation/pledge alone shall be counted towards Statutory Liquidity Ratio.

14. Loan against Bonds

The Bonds may be used as collateral for loans. The Loan to Value ratio will be as applicable to ordinary gold loan mandated by the RBI from time to time. The lien on the Bonds shall be marked in the depository by the authorized banks. The loan against SGBs would be subject to decision of the lending bank/institution, and cannot be inferred as a matter of right by the SGB holder.

15. Tax Treatment

Interest on the Bonds shall be taxable as per the provisions of the Income-tax Act, 1961 (43 of 1961). The capital gains tax arising on redemption of SGB to an individual has been exempted. The indexation benefits will be provided to long term capital gains arising to any person on transfer of bond.

16. Applications

Subscription for the Bonds may be made in the prescribed application form (Form ‘A’) or in any other form as near as thereto, stating clearly the grams of gold and the full name and address of the applicant. Every application must be accompanied by the ‘PAN details’ issued by the Income Tax Department to the investor(s). The Receiving Office shall issue an acknowledgment receipt in Form ‘B’ to the applicant.

17. Nomination

Nomination of and its cancellation shall be made in Form ‘D’ and Form ‘E’, respectively, in accordance with the provisions of the Government Securities Act, 2006 (38 of 2006) and the Government Securities Regulations, 2007, published in part III, Section 4 of the Gazette of India dated December 1, 2007. An individual Non – resident Indian may get the security transferred in his name on account of his being a nominee of a deceased investor provided that:

1. the Non-Resident investor shall need to hold the security till early redemption or till maturity; and
2. the interest and maturity proceeds of the investment shall not be repatriable.

18. Transferability

The Bonds issued in the form of Stock Certificate shall be transferable by execution of an Instrument of transfer as in Form ‘F’, in accordance with the provisions of the Government Securities Act, 2006 (38 of 2006) and the Government Securities Regulations, 2007, published in part III, Section 4 of the Gazette of India dated December 1, 2007.

19. Tradability of bonds

The Bonds shall be eligible for trading from such date as may be notified by the Reserve Bank of India.

20. Commission for mobilizing subscription

Commission for mobilizing subscription shall be paid at the rate of Rupee one per hundred of the total subscription received by the receiving offices on the applications received and receiving offices shall share at least 50% of the commission so received with the agents or sub-agents for the business procured through them.

21. All other terms and conditions specified in the notification of Government of India in the Ministry of Finance (Department of Economic Affairs) vide number F. No.4(2) W&M/2018, dated 27th March 2018 shall apply to the Bonds.

22. Operational guidelines relating to Sovereign Gold Bonds are issued vide circular IDMD.CDD.No.3391/14.04.050/2018-19 dated May 30, 2019.

Yours faithfully,

(Raksha Mishra)
General Manager

Encls.: As above.

May 30, 2019

The Chairman & Managing Director
All Scheduled Commercial Banks
(Excluding RRBs)
Designated Post Offices
Stock Holding Corporation of India ltd.(SHCIL)
National Stock Exchange of India Ltd. & Bombay Stock Exchange Ltd.

Dear Sir/Madam,

Sovereign Gold Bond Scheme 2019-20 – Series I/II/III/IV – Operational Guidelines

This has reference to the GoI notification F.No.4(7)-W&M/2019 dated May 30, 2019 and RBI circular IDMD.CDD.No.3392/14.04.050/2018-19 dated May 30, 2019on the Sovereign Gold Bonds. FAQs in this regard have been placed on our website (www.rbi.org.in). Operational guidelines with regard to this scheme are given below:

1. Application

Application forms from investors will be received at branches during normal banking hours on the weeks of subscription. Receiving Offices need to ensure that the application is complete in all respects as incomplete applications are liable to be rejected. Relevant additional details may be obtained from the applicants, where necessary. The Receiving Offices may make arrangements to enable the investors to apply online, in the interest of better customer service.

2. Joint holding and nomination

Multiple joint holders and nominees (of first holder) are permitted. Necessary details may be obtained from the applicants as per practice. An individual Non – resident Indian may get the security transferred in his/her name on account of he/she being a nominee of a deceased investor provided that:

1. the Non-Resident investor shall need to hold the security till early redemption or till maturity; and
2. the interest and maturity proceeds of the investment shall not be repatriable.

3. Know-Your-Customer (KYC) requirements

Every application must be accompanied by the ‘PAN details’ issued by the Income Tax Department to the investor(s). It may be ascertained from the investor, if he/she has made a previous investment in SGBs or IINSC-C and hence in possession of an Investor ID. If so, the investments may be made under the unique Investor ID only.

4. Cancellation

Cancellation of application is permitted till the closure of the issue, i.e. until Friday of the particular week of subscription. Part cancellation of submitted request for purchase of gold bonds is not permitted.

5. Lien marking

As the bonds are government securities, lien marking, etc. will be as per the extant legal provisions of Government Securities Act, 2006 and rules framed there under. The lien shall be marked by the Receiving Offices/Public Debt Offices of RBI in case of financing by agencies other than the Receiving Offices.

6. Agency arrangement

Receiving Offices may engage NBFCs, NSC agents and others to collect application forms on their behalf. Banks may enter into arrangements or tie-ups with such entities. Commission for distribution shall be paid at the rate of Rupee one per hundred of the total subscription received by the Receiving Offices on the applications received and Receiving Offices shall share at least 50% of the commission so received with the agents or sub-agents for the business procured through them.

7. Processing through RBI’s e-Kuber system

Sovereign Gold Bonds will be available for subscription at the Receiving Offices through RBI’s e- Kuber system. The e-Kuber system can be accessed either through INFINET or Internet. The Receiving Offices need to enter the data or carry out bulk upload for the subscriptions received by them. They may ensure accuracy of entry of data to prevent occurrence of any inadvertent errors. An immediate confirmation will be provided to them for receipt of application. In addition, a confirmation scroll will be provided for file uploads to enable the Receiving Offices to update their database. On the date of allotment, Certificates of Holding will be generated for all the subscriptions in the name of the sole/principal holder. The Receiving Offices can download the same and take printouts. The Certificates of Holding will also be sent through e-mail to the investors who have provided their email address. The securities will be credited in their de-mat accounts by the depositories in due course subject to matching of particulars furnished in the application with the depositories’ records.

8. Printing Certificates of Holding

Holding Certificate needs to be printed in colour on A4 size 100 GSM paper.

9. Servicing and follow up

Receiving Offices will “own” the customer and provide necessary services with regards to this bond e.g. update contact details, receive requests for premature encashment, etc. Receiving Offices will be required to preserve applications till the bonds are matured and are repaid.

10. Tradability

The Bonds shall be eligible for trading on a date notified by the Reserve Bank of India. (It may be noted that only bonds held in demat form with depositories can be traded in stock exchanges)

11. Contact details

Any queries/clarifications may be e-mailed to the following:

(a) Sovereign Gold Bond related: Please click here to send email.

(b) IT related: Please click here to send email.

Yours faithfully,

(Raksha Mishra)
General Manager