There is no perfect time to buy stocks during the day in India. Different types of investors choose different time frames to buy stocks. A day trader chooses the most volatile time periods of the Stock market. The starting & ending hour is known to be the most volatile hours. Similarly a Long term buyer tries to avoid the most volatile hours to buy stocks and utilizes the remaining 4 hours to execute his trades.
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Best Time to Buy Stocks in India-
There is NO best or perfect time in the day to buy Stocks in India, but there are some time periods where the volatility is the highest hence, one can consider buying stocks in those times or avoid those particular hours based on the type of buyer he/she is.
There are mainly 2 types of stock buyers in the market, for both of the categories, the time frame to buy stocks is different.
- Day trader
- Long-term Investor
Day Trader-
A day trader is an individual who buys a stock only to sell it within the same trading day and enjoy the price movement hence, a day trader chooses the most volatile time frames so that they can maximize their profits. They tend to trade between 9:15-10:30am & 2:30-3:30pm. In this period (Market opening and closing time) the volatility is at its peak and Day traders tend to use it in their favor. Whereas a Long term buyer might avoid these times.
Long Term Buyer-
A long-term buyer is an individual who buys stocks not for selling but for Investment. A long-term buyer tends to avoid the most volatile hours as the price fluctuations in this period are wild and one can easily pay more when buying in such time. The beginning & ending 1 hour of the stock markets are the most volatile hours hence investors tend to avoid these hours for investment.
Other Time periods-
The remaining 4 hours excluding the First & last hour is considered as the normal trading hours where the volatility is fairly normal.
There is also a 1 hour time between 1-2 p.m which is considered as the lunch hour when many traders and institutional traders are inactive, due to this the volumes in this hour are comparatively low. If one executes an extremely large order at this time, the price generally tends to shoot in one particular direction as the total volume (number of buyers & sellers) is less at this time.
Therefore to summarize, we can say that there is no best time to buy stocks during the day but there are some hours where the volatility is extremely high or Low, which can be utilized by individuals depending upon their type.