Finding the right stocks for intraday trading in the Futures & Options (F&O) segment can be overwhelming, with over 180+ stocks available. In this video, We explains, How to Pick F&O Stocks for Trading , data-driven strategy to filter the best F&O stocks based on liquidity, Best Intraday Stocks For Future.
If you often struggle to understand F&O Me Trading Kaise Kare and how to select the right stocks, this video will guide you through a proven step-by-step strategy for better intraday trading decision
Why is Stock Selection Crucial in F&O Trading?
🚨 Low liquidity = High risk – Difficult to enter/exit trades, leading to slippage.
📉 Low volatility = Fewer profit opportunities – Price movements are too small for good returns.
⛔ Ban period stocks = No fresh trades allowed – Trading restrictions can ruin a strategy.
Not all F&O stocks are ideal for intraday trading. By using a scientific filtering method, you can eliminate low-quality stocks and focus only on the best opportunities.
3-Step Strategy to Identify the Best F&O Stocks:
🔹 Check Liquidity – Stocks must have at least 3,000 contracts traded daily to ensure smooth order execution.
🔹 Measure Volatility – Use NSE’s Daily Volatility Report to find stocks with strong price movements. More volatility = more trading opportunities!
🔹 Avoid Ban Period Stocks – If a stock reaches 95% of the market-wide position limit, it enters the ban period, restricting fresh trades. Always check the NSE Ban List before trading.
Using NSE Data to Filter the Best F&O Stocks:
✅ F&O BhavCopy – To check liquidity and daily contract volumes.
✅ Daily Volatility Report – To analyze price movements and select stocks with the highest volatility.
✅ Ban Period List – To avoid stocks that can’t be traded.
📊 Use Excel filters & Conditional Formatting to highlight the best stocks based on liquidity & volatility.
By following these steps, you’ll be able to filter out weak stocks and trade only those with high liquidity and strong price movement.
Advanced Strategy – Percentile Ranking for Precision:
If you want to refine your list further, use a percentile ranking method:
🔸 Assign percentile scores to stocks based on liquidity & volatility.
🔸 Average the scores and rank them from highest to lowest.
🔸 Select only stocks above the 50th percentile for intraday trading.
This method helps eliminate underperforming stocks and ensures you trade only the best F&O opportunities.
Use Open Interest (OI) for Trade Confirmation:
📊 OI data reveals market sentiment – Helps identify if big traders are betting long or short.
📉 Avoid false breakouts by checking if Open Interest supports the price movement.
📈 Combining OI with liquidity & volatility gives a strong edge in F&O trading.
⏳ Timeline:
00:00 – Introduction
01:46 – What is futures trading?
03:02 – 3 Most Important factors in F&O trading
05:16 – How to find F&O Stocks for trading?
14:22 – Finetuning the stock picking technique
17:48 – Let's Summarize
Many traders waste time picking the wrong stocks and struggle to get good trade execution. By applying this structured approach, you can improve your intraday F&O trading strategy, increase your profit potential, and manage risk more effectively.
📢 Did you find this video useful? Drop a comment below with your thoughts!
🔔 Watch the full video to see the step-by-step process in action!
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