The Right Time to Invest in the Stock Market - India Infoline (2024)

Whether you are a newcomer or an experienced hand, the eternal question in trading is always - what is the best time to buy (or sell) stocks? While many deny it, some basic rules minimize your risks and offer you a higher chance of profit. Here are 4 simple recommendations on the right time to invest in stocks.

The Right Time to Invest in the Stock Market - India Infoline (1)

The Best Time of Day

This is most applicable to intraday traders who buy and sell their stocks and make their profits within the trading hours on a single day. Logically, it may seem tedious to watch the market throughout the trading hours for an opportunity to buy or sell. However, this is not true for the following reasons:

  • Too many hours watching charts and graphs causes mental fatigue and confusion.
  • The volatility drops after the first 90 minutes.
  • The volume in which stocks are traded might also drop after the first 90 minutes.
  • You will face seasoned traders whose moves might leave you flustered. Experienced traders are looking to manipulate rates and turn graphs around - this is no time for a beginner to experiment.

With all these factors taken into consideration, the best time of day to trade is 9:30 to 10:30 am. The stock market opens for trading at 9:15 AM and in the first 15 minutes, the market is still responding to the previous day's news with experienced traders waiting to make their move. As a result, that first 15-minute slot is best avoided. If you prefer more time to make your observations to make a more informed decision, stretch your trading time to a maximum of 11 am.

The Most Lucrative Day

Many forums will tell you that Monday is the best day to buy stocks, while Friday is the best day to sell stocks. The logic behind this advice is that stock prices are said to be at the lowest on a Monday (meaning you will buy shares at a lower price). The same contention goes on to say that stock prices are at their highest on a Friday (meaning that you will sell at a higher price). However, if everyone played that game then there would be no sellers on a Monday- everyone would only want to buy. Similarly, there would be no buyers on a Friday because all traders would only want to sell. This would mess with demand-supply economics. There is no such thing as a standard best day of the week.

The Most Favourable Conditions

The best time to buy stocks is when the share prices of a given stock are at a low. There is always a chance that they will drop even further, but buying at a low price is significantly safer than buying at a high price where the price of the stock is unlikely to climb much higher. Instead, prices may drop and you will end up having to sell at a loss. When you buy shares at a low price, they may drop further but there is a significantly higher chance that they will soon turn around and rise, giving you the chance to sell at a profit.

The best time to invest in F&O or to buy F&O contracts is when Open Interest, i.e. OI is low because it means that people are keen to sell and this usually means lower buy rates.

Other factors

Check the share prices of your chosen stock to know when is a good time to buy. An indicator called Moving Averages tells you the range of your stock price, which is the highest it ever rises and the lowest it ever falls, thereby helping you make a better decision. Additionally, watch for news related to your stock. Good news and dividend payouts can often result in a stock price rising.

Conclusion

It is safe to say that you must research and observe the charts, indicators and news around your preferred stocks. Avoid spending every single minute of every single day with your online trading account open on your screen. Watching the stock market and trying to cash in on every opportunity will end up being counter-productive. Be diligent in ensuring you are informed about the simple recommendations discussed in this article.

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The Right Time to Invest in the Stock Market - India Infoline (2024)

FAQs

What is a good time to invest in Indian stocks? ›

Best time of day to buy stocks -

The Indian stock market operates from 9:30AM to 3:15PM. Intraday traders who buy and sell stocks within a given day most often consider 9:30AM to 10:30AM an ideal time to trade. The stock market takes 15 minutes to react to the events which transpired since it last closed.

What is the right time to invest in stock market? ›

With all these factors taken into consideration, the best time of day to trade is 9:30 to 10:30 am. The stock market opens for trading at 9:15 AM and in the first 15 minutes, the market is still responding to the previous day's news with experienced traders waiting to make their move.

Is it right time to invest in share market for long term? ›

There is no right time to invest in stock markets. You should invest once you are ready for the same. Market crashes can be potentially dangerous as you might end up buying stocks that fail to recover from the crash. Hence, ensure that you analyze the fundamentals of a stock/company carefully.

What are the top 10 Indian stocks to buy right now? ›

Company NameLTPAll T/L
ICICI Bank975.453.77
Nestle India22977.15165.05
Bharti Airtel875.459.31
M & M1534.76.38
45 more rows

Which months are good for stocks? ›

Best time of the year to buy stocks. With the turn of the year comes optimism and new cash infusions, making December and January months that have historically seen stocks rise. April also tends to be a strong month for stocks.

Will Indian stock market grow in future? ›

Investors globally and at the domestic level also are looking forward to investing in the Indian market. The market always looks at the future. In the long term, economic fundamentals propel the market in the long-term. Thus the Indian stock market is about to perform well in near future.

What stocks will boom in 2023? ›

The 10 Best Growth Stocks of July 2023
Company (ticker)5-Year Avg. EPS Forecast
T-Mobile US (TMUS)+65.5%
WillScot Mobile Mini (WSC)+51.6%
ACM Research (ACMR)+42.7%
Arcos Dorados (ARCO)+42.6%
6 more rows

Can I buy stocks at night in India? ›

The overnight trading hours for NSE are from 3:45 p.m. to 8:57 a.m. For currency trading, you can place an AMO between 3:45 p.m. and 8:59 a.m. For trading derivatives such as future and options (commonly known as F&O), the overnight trading hours are between 3:45 p.m. and 9:10 a.m.

Should I invest weekly or monthly? ›

When investing over a long period of time, SIP frequency, whether done on a day-to-day, weekly or monthly basis, has little impact on overall returns. Using historical data and analysing some numbers, we can see that sometimes a monthly SIP works well and sometimes a daily or weekly SIP works well.

Which share is best for next 5 years? ›

Growth stocks for next 5 years
S.No.NameCMP Rs.
1.Brightcom Group27.05
2.Easy Trip Plann.43.65
3.Primo Chemicals67.19
4.TGV Sraac98.45
23 more rows

Is it good time to invest in Nifty 50? ›

There is no good or bad time to invest in the NIFTY 50 index fund. In fact, any time is a good time.

Should I hold a stock for 20 years? ›

Long-term investments almost always outperform the market when investors try and time their holdings. Emotional trading tends to hamper investor returns. The S&P 500 posted positive returns for investors over most 20-year time periods. Riding out temporary market downswings is considered a sign of a good investor.

Which is no 1 share in India? ›

Currently, MRF has the highest share price in India among all the listed companies on BSE/NSE. The all-time high share price of MRF is Rs. 1,02,965.00. The stock is currently trading at a consolidated PE of 56.42 and has given a return of 22.04% in the last 1 year as of April 2023.

Which Indian stock is growing fast? ›

FAST GROWING STOCK
S.No.NameP/E
1.Life Insurance10.92
2.Dr Reddy's Labs19.34
3.Hero Motocorp22.03
4.Coromandel Inter14.16
23 more rows

What are the top 5 stocks to invest in India? ›

  • HDFC Bank.
  • TCS/Tata Consultancy Services:
  • Hindustan Unilever.
  • Infosys.
  • RIL/Reliance Industries:
  • The Stock Market in 2023 - Where You'll Want to Be!

Which is the best month to buy stocks in India? ›

Is December the best time to buy stocks? While December is a good month to buy stocks, the best months are October and November. September typically averages a 0.9% loss, so buying stocks at the start of October, rather than December, usually returns the best profits over the Christmas period.

Is it worth investing in stocks in India? ›

Investing in the Stock Market can make your rich and pool also. There are a lot of people who have created huge wealth for themselves and there are a lot more who have lost their money in the stock market. One needs regular investment that is done for a long period because getting rich needs patience.

Which month is best to sell stocks in India? ›

As a result, some traders believe that September and October are the best months to sell stocks. The September effect highlights historically weak returns during the ninth month of the year, which could be aided by institutional investors wrapping up their third-quarter positions.

What are the best stocks for the next 10 years in India? ›

Best Indian Stocks For Next 10 Years
  • Yatra Online, Inc. (NASDAQ:YTRA) ...
  • Sify Technologies Limited (NASDAQ:SIFY) Number of Hedge Fund Holders: 5. ...
  • Azure Power Global Limited (NYSE:AZRE) Number of Hedge Fund Holders: 6. ...
  • Wipro Limited (NYSE:WIT) Number of Hedge Fund Holders: 10. ...
  • MakeMyTrip Limited (NASDAQ:MMYT)
Jun 13, 2023

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