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 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.

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

FAQs

The Right Time to Invest in the Stock Market - India Infoline? ›

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.

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

While there is no guarantee that the stock price will not slip further, it is less likely to do so than when it is closer to an all-time high. The best time of day to buy stocks: The best time to buy stocks during the day in India is widely considered to be between 9:30 AM and 10:30 AM.

Is it a good time to invest in Indian stock market 2023? ›

Most experts predict a bullish market outlook for the Indian stock market in 2023. Positive economic growth and government policies are expected to drive up stock prices. Additionally, the low-interest rates and ample liquidity are expected to attract investors toward equities.

What is best time to invest in stocks? ›

The upshot: Experienced traders often view Monday as the best day of the week to buy and sell stocks because of the time and pent-up demand since the last trading session the previous Friday.

Which stocks will grow in 2023 in India? ›

Best Stocks to Buy in Each Category in 2023
  • Coal India Limited. Mining, Refinery.
  • Indian Oil Corporation Limited. Energy: Oil and gas.
  • Power Finance Corporation. Financial Services. ...
  • Sonata Software Limited. Global IT Services.
  • Avanti Feeds Limited. ...
  • HCL Technologies Limited. ...
  • Bajaj Finance Limited. ...
  • Britannia Industries Limited.
Apr 27, 2023

Which stock is likely to rise in India? ›

The below table covers some of the most important factors while evaluating Growth stocks.
COMPANY NAMENSE CODEBSE CODE
Bajaj FinanceBAJFINANCE500034
Britannia IndustriesBRITANNIA500825
Muthoot FinanceMUTHOOTFIN533398
Petronet LNGPETRONET532522
4 more rows
Mar 9, 2023

Will Indian stock market grow in future? ›

The Indian stock market is expected to experience significant growth over the next few years. As of 2025, investors could see a major upside in the BSE and NSE indexes.

What to expect from Indian markets in 2023? ›

The Sensex and Nifty 50 indexes were expected to gain 3.8% and 4.6%, respectively, from Tuesday's close to end-2023, slightly downgraded from a February poll. Over 70% of analysts believe Indian stocks will trade in a narrow range for the next three months.

How will Indian stock market perform in 2023? ›

The Sensex was expected to gain 3.8% from Tuesday's close to a lifetime high of 64,318 by end-2023. It was then forecast to add another 2.6% to reach 65,974 by mid-2024, according to the median forecast in the May 10-23 Reuters poll.

Which sector will boom in 2023 in India? ›

In addition to this, the Indian government's green energy push has led to the renewables industry growing at an astounding rate. Moreover, the forthcoming budget for F.Y. 2023-2024 will likely push renewables even further. This makes the energy sector one of the best sectors to invest in India right now.

What is the 3 day rule in stocks? ›

The three-day settlement rule states that a buyer, after purchasing a stock, must send payment to the brokerage firm within three business days after the trade date. The rule also requires the seller to provide the stocks within that time.

How do you know if a stock will go up? ›

We want to know if, from the current price levels, a stock will go up or down. The best indicator of this is stock's fair price. When fair price of a stock is below its current price, the stock has good possibility to go up in times to come.

What are the 10 best stocks to buy in India? ›

Industry
  • Reliance Industries. Multinational Conglomerate.
  • Tata Consultancy Services (TCS) Information Technology.
  • Infosys. Information Technology.
  • HDFC Bank. Banking.
5 days ago

Which stocks to buy for 5 years in India? ›

Growth stocks for next 5 years
  • Brightcom Group. 24.95. 3.67. 5034.72. 1.20. 229.15. 2.73. 1367.92. 10.28. 30.91. 1370.99. 44.18.
  • Easy Trip Plann. 44.09. 52.18. 7664.26. 0.15. 37.81. 58.07. 111.47. 88.42. 54.57. 146.82. 39.17.
  • Primo Chemicals. 63.68. 11.58. 1543.28. 0.00. 17.47. -58.55. 147.80. -8.24. 43.90. 133.98. 121.93.

Which sector is going to boom in India? ›

List of the Top Sectors in India that are Most Likely to Provide Excellent Returns
  • Healthcare and Insurance Sector. ...
  • Renewable Energy Sector. ...
  • IT Sector. ...
  • Real Estate Sector. ...
  • Fast-Moving Consumer-Goods Sector (FMCG) ...
  • Automobile Sector.
Mar 27, 2023

Which is No 1 stock in India? ›

1. Reliance Industries Ltd. Reliance Industries Ltd (RIL) is an Indian conglomerate with a business interest in energy, petrochemicals, textiles, natural resources, retail, and the telecommunication sector.

What is the most profitable stock ever in India? ›

To help investors find these lucrative stocks, we have compiled a list of the top 11 highest return stocks in the last 20 years in India.
  • Asian Paints Ltd. ...
  • HDFC Bank Ltd. ...
  • Britannia Industries Ltd. ...
  • Reliance Industries: ...
  • HDFC Ltd. ...
  • TCS Ltd. ...
  • ITC Ltd. ...
  • Infosys Ltd.
Mar 5, 2023

Which stock gives highest profit in India? ›

Top 100
Company NameLast Price% Change
Reliance2,481.90-0.72
TCS3,244.851.07
ONGC155.100.55
LIC India601.75-0.32
52 more rows
5 days ago

What is the fastest growing stock ever in India? ›

FAST GROWING STOCK
S.No.NameCMP Rs.
1.Life Insurance601.95
2.Dr Reddy's Labs4666.80
3.Hero Motocorp2899.30
4.Coromandel Inter931.75
23 more rows

What stocks to hold for long term India? ›

best long term stocks
S.No.NameCMP Rs.
1.SG Finserve587.10
2.Ksolves India904.25
3.Life Insurance597.75
4.Dreamfolks Servi588.30
23 more rows

Which stock gives highest return in last 5 years in India? ›

Highest returns in 5 year
S.No.NameCMP Rs.
1.Raj Rayon Inds.60.30
2.Best Agrolife1072.45
3.Authum Invest320.90
4.National Standar4866.00
23 more rows

Will Indian market recover in 2023? ›

In conclusion, the stock market may recover in 2023, but there are also risks and uncertainties that could continue to impact investor sentiment. As an investor, it's important to stay disciplined, focus on high-quality companies, and maintain a long-term perspective when making investment decisions.

What is the market risk for 2023? ›

We see five key risk areas to watch for 2023: economic dissonance, reshuffling labor markets, supply chain stabilization, energy security and the energy transition ahead, and the global security environment.

Will the stock market recover in 2023? ›

"In the first half of 2023, the S&P 500 is expected to re-test the lows of 2022, but a pivot from the Federal Reserve could drive an asset recovery later in the year, pushing the S&P 500 to 4,200 by year-end," the investment bank said in a research note.

Which month is best for share market in India? ›

In terms of frequency of growth, December has historically been the best month to own stocks.

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

Stock prices tend to fall in the middle of the month. So a trader might benefit from timing stock buys near a month's midpoint—the 10th to the 15th, for example. The best day to sell stocks would probably be within the five days around the turn of the month.

What is the 10 am rule in stock trading? ›

A trading rule known as the 10 a.m. rule states that you should never purchase or sell equities at that time. This is because prices can change drastically in a short amount of time during that period of time, when the market is typically quite volatile.

Is it worth investing in stocks in India? ›

Yes, investing in stocks is definitely a good idea because it is an amazing way to grow wealth. Investors who are thinking of a long-term can consider stocks as a good investment option.

What are the best 3 months of the stock market? ›

The monthly historical returns of both the S&P 500 Index and the Dow Jones Industrial Average show that the best months for the stock market are November, December, and April.

What time of day are stock prices lowest? ›

Afternoon Hours. After the morning mayhem, price movements and trading volume tend to settle down. Company news released during the midday or afternoon hours seldom creates the volatility seen after the open.

Which stock is best for 3 months? ›

Top Gainers: Top gainers in trading for 3-month in BSE 500
NameLTPChange(3-month%)
Glenmark Pharmaceuti..638.649.0%
Aurobindo Pharma Ltd.663.746.4%
Dixon Technologies (..4185.145.0%
Zomato Ltd.78.044.8%
21 more rows

What is the most active time in Indian stock market? ›

9:00 a.m. to 3:00 p.m.

How do you know what stocks will go up? ›

We want to know if, from the current price levels, a stock will go up or down. The best indicator of this is stock's fair price. When fair price of a stock is below its current price, the stock has good possibility to go up in times to come.

Can I buy stocks at night in India? ›

In India, there are two major stock exchanges: the BSE and National Stock Exchange of India. For equity trading, the overnight trading hours are from 3:45 p.m. to 8:59 a.m. for BSE. The overnight trading hours for NSE are from 3:45 p.m. to 8:57 a.m.

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