One of the simple ways to select stocks for intraday is to trade on stocks which have high volume and high Open interest gainers and losers . Open interest means total number of outstanding futures and options contract all combined.
If the stock price is moving up with increase in open interest , then traders are bullish on stock and taking long positions. However if the price of stock is going down with increase in open interest then traders are building short positions in that stock (bearish on stock) . Such stocks can be shorted when some trading conditions are satisfied .
For example If there is a stock down 1% with 10% increase in Open interest , it means short positions are built up. Now when that stock crosses yesterdays low, there is an opportunity to short the stock. Similarly if a short built up stock crosses pivot point R1 below , there is opportunity to sell that stock (short). See in chart below and you can see MCX open interest was up 10% and it crossed yesterdays high. SO we buy with R2 as target and days low as stop loss. R1,R2 are standard pivot points
Similarly if a stock is up 1% with increase in open interest 5% , and it crosses yesterdays high, you can buy that stock . You can find long buildup stocks and short built up stocks from our screener
This is one of the strategy which can help you to select stocks for intraday. We will be adding More intraday trading strategies for beginners soon.