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Swing trading is a short-term trading strategy that involves buying and selling stocks based on their price movements over a few days or weeks. Swing traders aim to capture the profits from the fluctuations in the market, rather than holding the stocks for the long term. Swing trading requires technical analysis, market trends, and risk management skills to identify the best entry and exit points for each trade.
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Best Swing Trade Stocks for (2023)
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ITC
Current Price
448.35
52 High/Low
499.70 / 324.75
1 Year Returns
36.42%
Current Price
448.35
52 High/Low
499.70 / 324.75
1 Year Returns
36.42%
Why We Picked It
ITC can be considered for swing trading based on a variety of factors that swing traders typically assess when looking for potential opportunities. Here are some aspects to consider regarding swing trading ITC’s stock:
Volatility: Swing traders often look for stocks with moderate volatility. ITC’s price may exhibit these shorter-term price movements that can create opportunities for swing traders.
Chart Patterns: Analyze the stock’s historical price charts for patterns like flags, pennants, head and shoulders, or double tops/bottoms. These can indicate potential entry or exit points.
Moving Averages: Use moving averages (e.g., 50-day or 200-day) to identify trends. Crossovers or divergences can signal entry or exit points.
Volume: Consider trading volumes. Higher volumes indicate strong market interest. Look for price moves accompanied by increased volume.
Fundamental Factors: Check for company news, earnings reports, and sector-related news. Fundamental factors can impact the stock’s price and its suitability for swing trading.
Risk Management: Define your risk tolerance and use stop-loss orders to limit potential losses. Swing trading can be risky, so it’s important to have a well-defined risk management strategy.
Entry and Exit Points: Plan your entry and exit points in advance. Determine the price levels at which you’ll enter the trade and set profit-taking levels or stop-loss orders.
Timeframe: Decide on your preferred swing trading timeframe. It could be daily, weekly, or even intraday, depending on your trading style.
Market Conditions: Consider the overall market conditions, sentiment, and trends. Swing trading can be more challenging in a highly volatile or bearish market.
Technical Indicators: Use technical indicators like Relative Strength Index (RSI), Moving Average Convergence Divergence (MACD), and Stochastic Oscillator to aid in your analysis.
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Reliance Industries
Current Price
2,349.30
52 High/Low
2,856.00 / 2,180.00
1 Year Returns
-1.41%
Current Price
2,349.30
52 High/Low
2,856.00 / 2,180.00
1 Year Returns
-1.41%
Why We Picked It
Reliance Industries appears to have some characteristics that could make it a candidate for swing trading. Here’s why:
Lowest in One Year: The fact that the stock is currently at its lowest point in one year suggests a potential buying opportunity. Swing traders often look for stocks that have reached near-term lows, as they anticipate a price rebound.
Historical Price Performance: Although the one-year return is slightly negative at -0.55%, the stock has shown significant returns over five years, with a gain of 115.58%. This indicates that the stock has the potential for strong price movements, which is attractive to swing traders.
PE Ratio: Reliance Industries has a reasonable Price-to-Earnings (P/E) ratio of 24.50, which implies that the stock is not overly expensive relative to its earnings. This can be appealing to value-focused traders.
PB Ratio: The Price-to-Book (P/B) ratio of 2.01 suggests that the stock is trading at a reasonable valuation in relation to its book value. Swing traders often consider stocks with favorable valuation metrics.
Sectoral MCap Rank: Reliance Industries holds the top rank within its sector based on market capitalization. This indicates that it’s a dominant player in its sector.
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Infosys Ltd
Current Price
1,431.15
52 High/Low
1,672.60 / 1,185.30
1 Year Returns
0.79%
Current Price
1,431.15
52 High/Low
1,672.60 / 1,185.30
1 Year Returns
0.79%
Why We Picked It
Infosys Ltd has several attributes that might make it a compelling choice for swing trading. Here’s why:
Positive Price Momentum: Infosys has shown positive price momentum over various timeframes. It has experienced gains over one week (3.47%), one month (1.22%), three months (10.81%), one year (4.96%), and three years (35.02%). This demonstrates a consistent upward trend, which is appealing for swing traders looking for stocks with strong price momentum.
Sectoral MCap Rank: Infosys holds a high rank in its sector based on market capitalization, indicating its prominence within its industry.
PE Ratio: The Price-to-Earnings (P/E) ratio of 25.13 is relatively reasonable, suggesting that the stock is not excessively valued concerning its earnings. Swing traders often consider stocks with attractive valuations.
Dividend Yield: With a dividend yield of 2.28%, Infosys offers a potential income stream to investors. This can be advantageous for swing traders who are looking for both price appreciation and dividends.
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Adani Green Energy
Current Price
948.90
52 High/Low
2,258.80 / 439.10
1 Year Returns
-54.45%
Current Price
948.90
52 High/Low
2,258.80 / 439.10
1 Year Returns
-54.45%
Why We Picked It
Adani Green Energy presents an intriguing option for swing trading. Here’s why it could be a compelling choice:
Significant Price Volatility: Adani Green Energy has experienced substantial price fluctuations in the last one year, with a return of -54.79%. This volatility can provide opportunities for short- to medium-term swing traders to capitalize on price swings.
Positive Historical Performance: Over the last three years, Adani Green Energy has delivered a significant return of 40.72%. This historical performance is promising for swing traders seeking stocks with a track record of gains.
Sectoral Prominence: Adani Green Energy holds a notable rank within its sector based on market capitalization, indicating its significance in the renewable energy industry.
Buy Signal: The presence of a “Buy Signal” suggests a potential bullish trend, which could be attractive to swing traders.
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Bank of Baroda
Current Price
204.45
52 High/Low
219.65 / 129.10
1 Year Returns
56.54%
Current Price
204.45
52 High/Low
219.65 / 129.10
1 Year Returns
56.54%
Why We Picked It
Bank of Baroda appears to be an interesting stock for swing trading based on the provided data. Here’s why:
Lowest in One Year: The fact that the stock is currently at its lowest point in one year suggests a potential buying opportunity. Swing traders often look for stocks that have reached near-term lows, as they anticipate a price rebound.
Low P/E Ratio: The low Price-to-Earnings (P/E) ratio of 6.11 indicates that the stock is relatively undervalued compared to its earnings. This can make it attractive to value-oriented traders.
Strong Earnings Per Share (EPS): A trailing twelve-month EPS of ₹33.93 demonstrates that the company has been consistently profitable over the past year. This is a positive sign for traders looking for fundamentally strong stocks.
Attractive Dividend Yield: The dividend yield of 2.65% provides an additional incentive for swing traders. Dividend-paying stocks can offer some income while waiting for price movements.
Historical Price Performance: The stock has shown notable returns over different time frames. A one-year return of 59.88% and a three-year return of 367.72% indicate that the stock has had substantial price appreciation, which can be of interest to traders.
Sectoral Rank: Bank of Baroda holds a Sectoral Market Capitalization Rank of 7, which suggests that it’s one of the significant players in its sector.
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Vodafone Idea
Current Price
12.00
52 High/Low
12.50 / 5.70
1 Year Returns
39.53%
Current Price
12.00
52 High/Low
12.50 / 5.70
1 Year Returns
39.53%
Why We Picked It
Vodafone Idea could be an interesting stock for swing trading, but it’s important to approach it with caution due to its peculiar financial situation. Here’s why it might be considered for swing trading:
High Price Volatility: Over the last year, Vodafone Idea’s share price has witnessed considerable fluctuations. Swing traders often look for stocks with such volatility to capitalize on short- to medium-term price movements.
Recent Positive Momentum: In the last year, Vodafone Idea has shown a substantial return of 36.99%. The recent upward momentum could be appealing for swing traders seeking stocks with a history of gains.
Buy Signal: The presence of a “Buy Signal” is an encouraging sign for swing traders, indicating the potential for a bullish trend.
Sectoral Significance: Vodafone Idea ranks prominently within its sector based on market capitalization, indicating its relevance in the telecommunications industry.
However, it’s crucial to note that Vodafone Idea has been facing financial difficulties, as evident from its negative Price-to-Earnings (PE) ratio. Swing trading in such stocks involves higher risk, as the company’s financial health may impact share prices significantly. Additionally, the high beta of 4.62 suggests that the stock is more volatile compared to the market.
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Adani Enterprises
Current Price
2,454.55
52 High/Low
4,190.00 / 1,017.45
1 Year Returns
-24.09%
Current Price
2,454.55
52 High/Low
4,190.00 / 1,017.45
1 Year Returns
-24.09%
Why We Picked It
Adani Enterprises presents some interesting aspects that might make it appealing for swing trading. Here’s an analysis based on the provided data:
Intraday Fact Check: Although it’s not extremely common, Adani Enterprises has seen occasional intraday gains exceeding 5% over the past 18 years. This indicates that there is potential for short-term price fluctuations, which is favorable for swing trading.
High Beta: Adani Enterprises has a Beta of 2.25, signifying that it’s relatively more volatile than the overall market. Swing traders often look for stocks with high betas because they tend to have more significant price movements in the short term.
Historical Performance: The company has displayed substantial price fluctuations over the past three years. While it has shown a decline in the last year, this history suggests opportunities for short-term price swings.
Sectoral MCap Rank: Adani Enterprises is ranked 3rd within its sector based on market capitalization. Swing traders may benefit from price movements within a leading sector.
PE Ratio and PB Ratio: Adani Enterprises has relatively high PE and PB ratios, indicating that it may not be considered a value stock. Swing traders often prioritize technical analysis over fundamentals, but these ratios are still worth noting.
One-Week and One-Month Returns: The stock has shown a 1.62% increase in one week, although there was a slight decrease over the past month. These short-term price movements can offer opportunities for swing traders.
All prices updated as on October 13, 2023.
Methodology
To find the best stocks for swing trading, we’ve employed a comprehensive methodology that considers various factors, including both technical and fundamental analysis. Here’s the methodology we followed to identify potential candidates for our readers:
1. Volatility Screening:
We begin by screening for stocks with moderate to high levels of historical price volatility. Swing trading thrives on price swings, so we look for stocks that exhibit these characteristics.
2. Technical Analysis:
Our team of experts conducts in-depth technical analysis, examining historical price charts for recognizable patterns, including flags, pennants, head and shoulders, double tops, and double bottoms.
These patterns help us anticipate potential future price movements, and we use them to determine entry and exit points for our readers.
3. Moving Averages:
We analyze moving averages to identify trends. Specifically, we look for crossovers, such as when a short-term moving average (e.g., 50-day) crosses above a long-term moving average (e.g., 200-day). These crossovers can indicate bullish or bearish trends.
4. Trading Volume:
We pay close attention to trading volumes. For a stock to be considered a potential candidate, significant price movements should be accompanied by increased trading activity.
Abnormal volumes often signal strong market interest, which is a positive factor for swing trading.
5. Fundamental Analysis:
In addition to technical analysis, we consider fundamental factors. This includes earnings reports, company news, and the overall financial health of the company.
Major news events and financial results can substantially impact stock prices, and we incorporate these into our analysis.
6. Technical Indicators:
Our experts also employ various technical indicators, such as RSI, MACD, Stochastic Oscillator, and Bollinger Bands, to help confirm potential entry and exit points for our readers.
7. Risk Management Rules:
We stress the importance of risk management. We encourage our readers to define their risk tolerance and position size for each trade.
Using stop-loss orders to limit potential losses and take-profit orders to lock in profits is a fundamental aspect of our strategy.
8. Sector Momentum Analysis:
We consider broader market trends and sector performance, as some sectors may offer better swing trading opportunities during specific periods.
Sector rotation strategies are part of our approach.
9. Backtesting and Paper Trading:
We advocate backtesting a chosen strategy on historical data to assess its potential success.
For inexperienced traders, we recommend paper trading as a way to practice the strategy in a risk-free environment.
10. Continuous Monitoring:
Our experts emphasize the need for ongoing monitoring of company-specific news, market trends, and macroeconomic events. Staying informed is crucial, as these factors can impact trade decisions.
11. Watchlist Creation:
We encourage our readers to maintain a watchlist of potential swing trading candidates. It should be regularly reviewed and updated based on specific criteria.
12. Trading Plan Development:
Before initiating any trades, we advise our readers to create a comprehensive trading plan that outlines their strategy, entry and exit points, risk management rules, and profit-taking strategies.
13. Learning and Adaptation:
Lastly, we stress the importance of continuous learning and adaptation. Our readers are encouraged to educate themselves about swing trading techniques, strategies, and evolving market conditions.
We aim to provide our readers with a well-rounded methodology for identifying potential swing trading opportunities while emphasizing the need for prudent risk management and discipline. Swing trading involves inherent risks, and readers should adapt these strategies to their individual risk tolerance and financial goals.
Best Platforms for Swing Trading Stocks
Swing trading, a widely favored and lucrative method of stock trading in India, revolves around retaining stocks for periods ranging from a few days to several months, contingent upon market dynamics and price fluctuations. Swing traders leverage a range of analytical tools, encompassing technical analysis, charts, market news, and various resources to pinpoint optimal entry and exit points for their trading activities.
While India boasts numerous platforms that cater to swing trading, it’s essential to note that not all of them are beginner-friendly or offer cost-effective fee structures. As per web search results, here are some of the top platforms in India for swing trading stocks:
Upstox Pro
Renowned as one of the premier automated algo platforms, Upstox Pro empowers traders to craft and execute their custom trading strategies. It boasts advanced charting tools, a wide array of indicators, and dynamic scanners to assist in market analysis and opportunity identification. An appealing feature is the minimum brokerage fee, set at just Rs. 20 per order, and the absence of a minimum balance requirement.
Sharekhan
As one of India’s most venerable and trusted platforms for swing trading, Sharekhan offers a comprehensive solution. Its smart trading app integrates charts, trading signals, diverse features, and a convenient shortcut bar for investment tracking. Sharekhan goes further, providing personalized advisory services, research reports, and educational resources to nurture and enhance trading skills. The brokerage fees stand at 0.1% for delivery trades and 0.03% for intraday trades.
ICICI Direct
Counted among the largest and most esteemed platforms for swing trading, ICICI Direct boasts a user-friendly app. It supports trading across various segments, including equity, derivatives, currency, commodities, and mutual funds. The platform is equipped with quick fund transfer options, margin trading capabilities, portfolio tracking features, and alert systems for efficient trade management. Brokerage fees are set at 0.55% for delivery trades and 0.03% for intraday trades.
5Paisa
Positioned as one of the most budget-friendly options for swing trading, 5Paisa offers a straightforward and user-friendly app for seamless stock, mutual fund, ETF, gold, and insurance trading. 5Paisa takes affordability seriously, providing investment advice, robo-advisory services, and AI-based tools to facilitate informed trading decisions. The flat brokerage fee is a mere Rs. 20 per order, with no additional account opening or maintenance charges.
Angel One
Renowned for its speed and reliability, Angel One offers a streamlined trading experience. This all-in-one platform enables access to multiple markets, encompassing equity, derivatives, currency, commodities, IPOs, and mutual funds. Technical tools, charting capabilities, real-time news updates, and research reports are part of the package, aiding in market analysis and opportunity identification. Angel One charges a brokerage fee of 0.4% for delivery trades and 0.03% for intraday trades.
Featured Partners
1
BlackBull Markets
Multiple Award-Winning Broker
Listed On Deloitte Fast 50 index, 2022 Best Global FX Broker – ForexExpo Dubai October 2022 & more
Best-In-Class for Offering of Investments
Trade 26,000+ assets with no minimum deposit
Customer Support
24/7 dedicated support & easy to sign up
On BlackBull Market’s secure website
How Much Money Do I Need to Begin Swing Trading Stocks?
One can start swing trading with only the brokerage fee and the price of a single stock. The required investment depends on the amount of money you have and the price of the stock you choose. Some stocks are priced as low as INR 5, making it possible to buy multiple shares, even when accounting for brokerage fees.
Conversely, there are companies with stocks priced at INR 50,000, so the required investment may be higher. There is no fixed or minimum amount that you must adhere to when swing trading, providing flexibility for investors.
Swing trading in India allows investors to begin with a flexible investment amount based on their financial capacity. The absence of a fixed minimum requirement makes it accessible to a wide range of investors. The key is to manage your risk effectively, make well-informed trading decisions, and ensure that your investment aligns with your financial goals and risk tolerance.
Important Factor to Consider Before Beginning Swing Trading Stocks
Before embarking on swing trading stocks, there are several crucial factors to consider to help you make informed decisions and increase your chances of success. These factors include:
Education and research: Acquiring a solid understanding of swing trading strategies, technical analysis, and market dynamics is essential. Invest time in learning about chart patterns, indicators, and trading tools to make informed decisions.
Trading plan: Develop a well-defined trading plan that outlines your goals, risk tolerance, entry and exit strategies, and rules for position sizing. A trading plan helps you stay disciplined and focused.
Risk management: Managing risk is paramount. Set stop-loss orders to limit potential losses, and never risk more than you can afford to lose. Diversify your portfolio to spread risk across different stocks.
Capital allocation: Determine how much capital you’re willing to allocate to swing trading. Avoid overextending yourself and keep a sufficient amount of trading capital.
Broker selection: Choose a reliable and cost-effective brokerage that aligns with your trading needs. Consider factors like commission fees, customer support, and trading platforms.
Stock selection: Select stocks that fit your trading strategy. Look for stocks with liquidity, volatility, and price movements that suit your swing trading goals.
Entry and exit strategies: Establish clear criteria for entering and exiting trades. Ensure your decisions are based on sound technical and fundamental analysis.
Timing: Consider the time frames you’ll be trading. Swing trading typically involves holding positions for several days to weeks. Choose time frames that align with your strategy.
News and events: Be aware of upcoming economic events, corporate earnings reports, and news that can impact the stock market. Such events can affect your trades.
Psychological preparedness: Develop the right mindset for trading. Emotions like fear and greed can influence your decisions. Stay disciplined and stick to your trading plan.
Continuous learning: The stock market is dynamic, and it’s crucial to stay updated with the latest market trends and news. Continue to learn and adapt your strategies accordingly.
Record keeping: Maintain a detailed trading journal to track your trades, analyze your performance, and identify areas for improvement.
Paper trading: Consider practicing with a paper trading account before risking real capital. This allows you to test your strategies without financial risk.
Compliance with regulations: Be aware of and comply with all financial regulations and tax laws related to trading in your country.
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