What is Intraday Trading in India 2025–2026? Complete Guide to Strategies, Rules, Taxes, and Tips for Beginners
As of November 2025, intraday trading volumes on NSE hit ₹1.2 lakh crore in equity cash segment—up 12% from last month—fueled by Nifty’s rebound to 26,013.45 (+0.40%) amid Q2 earnings buzz from IT heavyweights like TCS (up 2.1%). With retail Demat accounts crossing 24 crore (75% under 30), intraday’s allure is clear: Quick profits from volatility without overnight risk. But SEBI’s FY25 study shows 90% of retail F&O traders lost ₹1.06 trillion—highlighting the need for discipline.
Intraday trading—buying/selling stocks same-day—thrives on short-term swings, but success demands strategy, not luck. Amid RBI’s 3.7% FY26 inflation (easing from 4.8%), it beats FDs (7–7.5%) with 15–20% potential returns—but 70% lose due to emotions/margins. This guide covers basics, strategies, rules (SEBI’s T+1 margins from April 2025), taxes (slab rates FY26), charges (₹20/order avg.), and tips. Start educated—risk only 1–2% capital/trade.
What is Intraday Trading and How It Works?
Intraday (or day trading) means opening/closing positions same trading day (9:15 AM–3:30 PM IST), profiting from intra-day volatility. No overnight holds—avoids gaps from global cues.
How It Works:
- Select Assets: High-liquidity stocks (e.g., Reliance, HDFC Bank—avg. volume 1–2 crore shares).
- Leverage: Brokers offer 4–5x margins (SEBI cap), amplifying ₹10k to ₹50k position.
- Entry/Exit: Use TA (charts) for buys (support break), sells (resistance hit). Square-off by 3:20 PM (auto if not).
- P&L: Gross = (Sell – Buy) × Qty; Net = Gross – Charges/Taxes.
2025 Example: Buy 500 HDFC Bank at ₹1,650 (10 AM); sell at ₹1,670 (2 PM) = ₹10k gross profit. After ₹100 charges/STT, net ₹9,900.
Volatility drivers: Earnings (TCS Q3 beat), news (RBI cuts). Tools: Zerodha Kite for real-time.
What is Intraday Trading with Example
Example (Live Nov 17, 2025): Nifty opens at 25,950; you spot momentum in Tata Motors (EV policy tailwind).
- 10:15 AM: Buy 200 shares @ ₹950 (₹1.9 lakh; 4x leverage = ₹47,500 margin).
- 2:45 PM: Sell @ ₹970 (+2.1%) = ₹19,400 gross.
- Net: ₹19,400 – ₹40 brokerage – ₹48.5 STT – ₹7.2 GST = ₹19,304 profit (ROI 40% on margin).
If dips to ₹930? Stop-loss triggers -₹4,000 loss (capped at 2% capital).
Intraday Trading Meaning
“Intraday” = “within the day” (Latin). In India, it’s speculative trading on NSE/BSE equity/cash/F&O, closing by EOD. Differs from delivery (T+1 hold). 2025 volumes: ₹95 lakh crore monthly F&O, but 90% retail losses underscore discipline.
What is Intraday Trading Investing?
Intraday ≠ investing (long-term value growth). It’s short-term speculation on price action, not fundamentals. Investors hold Reliance for dividends (2–3%); traders scalp ₹5–10 moves. 2025: Use for 5–15% monthly returns, but pair with positional for balance.
Intraday Trading for Beginners
Step 1: Understanding Basic Concepts
Liquidity (easy buy/sell), volatility (price swings), margins (borrowed capital). Start with NSE’s free “Intraday Basics” module.
Step 2: Choosing the Right Stocks
High-volume: Top 50 Nifty (Reliance, HDFC—1–5% daily range). Avoid illiquid (wide spreads). 2025 Picks: IT (TCS post-Q3), Auto (Maruti EV push).
Step 3: Setting Up a Trading Account
Demat + Trading via Zerodha/Groww (₹0 delivery, ₹20 intraday). KYC: 5 mins; fund ₹10k+.
Step 4: Using Technical Analysis
5/15-min charts, RSI (overbought >70), VWAP (above = bullish). Tools: TradingView free.
Beginner Checklist: Risk 1%/trade; 3–5 stocks max.
Intraday Trading Tips
Tip 1: Set Stop-Loss Limits
Auto-sell at 0.5–1% below entry (e.g., buy ₹100, SL ₹99). Saves 70% of potential losses.
Tip 2: Trade in Liquid Stocks
Nifty 50 (volume >1 crore). Avoid penny (<₹10, illiquid).
Tip 3: Avoid Volatile Markets Without Plan
Skip news events (RBI policy); trade range-bound (VIX <15).
Tip 4: Practice Discipline
1:2 risk-reward; no revenge trades. Journal 80% of decisions.
2025 Pro Tip: Use AI alerts (Groww ARQ) for breakouts; focus first/last hour (9:15–10:15 AM, 2:30–3:30 PM).
Learn Intraday Trading
- Books: “Intraday Trading Strategies” (Oliver Velez); “How to Day Trade for a Living” (Andrew Aziz).
- Online Courses: Udemy “Intraday Mastery” (₹500, 10 hrs); NSE Academy (free TA module).
- Simulators: Neostox (virtual ₹1 lakh); Streak (backtest strategies).
2025: Zerodha Varsity’s “Intraday Module” (free, with SEBI rules).
Intraday Trading Charges
Costs erode profits—factor 0.1–0.2% per trade. 2025 Avg.: ₹20/order + taxes.
Breakdown (₹1 Lakh Trade, Sell Side)
| Charge | Rate/Amount | Cost (₹) |
|---|---|---|
| Brokerage | ₹20/order (Zerodha/Upstox) | 20 |
| STT | 0.025% on sell | 25 |
| GST | 18% on brokerage | 3.6 |
| Stamp Duty | 0.015% (varies by state) | 15 |
| Exchange Txn | NSE: 0.00325% | 3.25 |
| SEBI Fee | ₹10/crore | 0.1 |
| DP Charges | ₹15–20/order (if applicable) | 15 |
| Total | ~0.1–0.15% | 82 |
Impact: 10 trades/month = ₹800 extra; choose ₹0 delivery brokers.
Basics of Intraday Trading
- Leverage: 4–5x (SEBI cap; e.g., ₹20k controls ₹1 lakh).
- Margin Trading: Borrow for larger bets; repay EOD (interest 0.03–0.05%/day).
- Stop-Loss: Auto-exit at preset loss (essential for 70% win rate).
- Entry/Exit: Support/resistance; VWAP crossover.
Risk Management: 1–2% capital risk/trade; diversify 3–5 stocks. Volatility: Thrives on 1–2% daily moves (e.g., Nifty range 100–200 pts).
Time Frame: 1/5/15-min charts; first/last hour (70% volume).
Intraday Trading Rules
SEBI’s 2025 updates emphasize safety—90% compliance mandatory.
- Close Within Day: All positions square-off by 3:20 PM; auto at market (broker fee ₹50).
- Establish Stop-Loss: Mandatory for leveraged trades; 1% max loss.
- Trade Liquid Stocks: Volume >50 lakh shares; Nifty 50 preferred.
- Avoid Emotional Trading: No revenge; journal 100% trades.
- Use Trading Strategy: 1:2 risk-reward; backtest.
- Don’t Trade High Volatility Sans Plan: Skip VIX >20 without hedges.
- Adhere to Risk-Reward: 1:2 min; position size = Risk / (Entry – SL).
- Monitor Trends: News via Moneycontrol; global cues (US close 1:30 AM IST).
- Avoid Overtrading: Max 5–10 trades/day; quality > quantity.
- Maintain Log: Track P&L, rationale; review weekly.
- Follow Hours: 9:15–3:30 PM; Muhurat (1-hr Diwali).
- Don’t Hold Losers: Cut at SL; no averaging down.
- Stay Disciplined: Plan > emotion; pause after 3 losses.
- Handle Leverage Cautiously: Max 4x; know margin calls.
SEBI 2025 Update: T+1 margins (April 28); intraday monitoring (4 snapshots/day, no penalty yet).
Best Time for Intraday Trading
9:15 AM–3:30 PM IST (Mon–Fri). Peak: Opening (9:15–10:15 AM, 70% volume) and closing (2:30–3:30 PM). Avoid lunch lull (12–2 PM, low vol). 2025: Pre-open (9–9:15 AM) for cues.
Tax on Intraday Trading
Speculative business income (slab rates FY26, AY27). Added to total income.
New Regime Slabs (FY26, No Deductions)
| Income Slab (₹) | Rate |
|---|---|
| 0–4L | 0% |
| 4–8L | 5% |
| 8–12L | 10% |
| 12–16L | 15% |
| 16–20L | 20% |
| 20–24L | 25% |
| >24L | 30% |
Old Regime (Deductions Allowed)
| Income Slab (₹) | Rate |
|---|---|
| 0–2.5L | 0% |
| 2.5–5L | 5% |
| 5–10L | 20% |
| >10L | 30% |
+4% cess; surcharge >₹50L. Losses: Offset speculative only; carry forward 4 yrs (file by Sept 15). ITR-3; audit if turnover >₹10Cr or profit <6%. Advance tax quarterly (15% June, etc.).
STT: 0.025% sell-side. GST: 18% on brokerage.
Intraday Trading Benefits and Disadvantages
Benefits
- Quick Gains: 1–5% daily (₹5k on ₹1 lakh).
- No Overnight Risk: Avoid gaps (e.g., US Fed news).
- Leverage: 4x boosts ROI (₹10k margin = ₹40k position).
Disadvantages
- High Risk: 90% lose (SEBI); volatility wipes margins.
- Emotional Stress: Constant monitoring; FOMO leads to overtrade.
- Skill Barrier: Needs TA mastery; beginners average -20% monthly.
Conclusion
Intraday trading—profitable in 2025–2026’s volatile rebound (Nifty +0.4% today)—demands rules, taxes savvy, and tips like SL/discipline. With SEBI’s T+1 margins and slab taxes, focus 1–2% risk/trade. Lucrative for pros (15–20% monthly), risky for newbies—practice simulators first. Continuous learning = edge. Risks apply—trade smart.
FAQs
Can I earn ₹5,000 a day in intraday trading? Possible with ₹1–2 lakh capital (1–2% ROI), but depends on strategy/markets. 70% lose—risk management key.
Can I buy 10,000 shares in intraday? Yes, with margins (4x); e.g., ₹10 lakh stock needs ₹2.5 lakh. Ensure liquidity; broker approval.
Is intraday trading safe? No—high risk (90% losses); use SL, 1% risk, liquid stocks. Not for beginners without practice.
Can I convert intraday to delivery? Yes, if funds cover (by 3:20 PM); broker fee ₹20–50. Switches to T+1 hold.
How much can I earn in intraday trading? Variable: 1–5% daily on capital (₹5k–25k on ₹5 lakh), but losses common. Discipline yields 10–20% monthly for pros.