This Is How Smart Money Trades In Stock Market | Kushal Varshney

Finance-Focused Summary

Kushal Varshney presents an intraday stock-trading method based on market breadth, five-minute price action, and volume. He emphasizes following a process and managing risk rather than trading impulsively. The strategy’s advertised “smallest stop loss” and large potential rewards are the presenter’s claims, not independently verified results.

Strategy Framework

1. Selection: Use market breadth to set direction

   • Check advances versus declines for the NSE F&O stock universe, which Varshney says contains roughly 200 stocks and changes over time.
   • Take a reading around 9:20–9:25 a.m. He recommends using the 9:25 a.m. reading and saving a screenshot because rankings fluctuate.
   • If advances outnumber declines, focus on the top five or six gainers and look for long setups.
   • If declines outnumber advances, focus on the top five or six losers and look for short setups.
   • He advises avoiding newly added F&O stocks because their volatility may be unusually high.

2. Setup: Use five-minute candles and volume

   • The market opens at 9:15 a.m. Ignore the first three five-minute candles, covering 9:15–9:30 a.m.; do not enter during this period.
   • The opening direction should agree with the intended trade: a green first candle for a long bias or a red first candle for a short bias.
   • Long setup: After the opening period, wait for a red pullback candle with very low volume. Place a buy trigger above that candle’s high and use its low as the stop.
   • Short setup: Wait for a green bounce candle with very low volume. Place a sell trigger below that candle’s low and use its high as the stop.
   • If subsequent candles continue the pullback or bounce on lower volume, the presenter says the entry level can be updated to the latest qualifying candle. Cancel the earlier pending order when updating it.
   • If volume rises on the opposing-colour candle, treat the setup as invalid and wait for another opportunity.
   • The presenter interprets low volume during a pullback as profit-taking rather than evidence of a strong reversal. This is his interpretation, not a guarantee.

3. Timing

   • He prefers taking setups before 10:30 a.m. and says 11:00 a.m. is the latest to consider them. He argues that markets may become sideways later and that low-volume conditions can produce traps.
   • The method is described as intraday only.

4. Risk management and execution

   • Use the setup candle’s opposite extreme as the stop-loss, with a small buffer; the example given is 5–10 paise.
   • Varshney recommends initially risking as little as ₹100 per trade and completing 100 trades with the system before proceeding or scaling up.
   • For a hypothetical ₹1 lakh account, he suggests risking at most ₹200 per trade, taking no more than four trades, and stopping for the day after a ₹1,000 loss, which he describes as 1% of capital. The arithmetic and phrasing in the subtitles are somewhat unclear, so treat these as his illustrative limits, not a personalized plan.
   • At a 1:2 risk-to-reward target, he advises booking half the position and moving the stop on the remainder to the entry price (“cost SL”).
   • He advises against watching the position constantly and says to review it around 3:15 p.m.

Other Key Points and Claims

• Varshney strongly cautions against index options and stock options, telling the beginner to stop trading options. The learner says he had previously bought stocks and options, incurred substantial losses, and had not used stop-losses or risk management.
• He says traders need reliable volume data and argues that free feeds from platforms such as Zerodha or TradingView may differ from his paid feed. He names Global Datafeeds as his data provider and quotes data costs of about ₹3,000 per month, with a reference to roughly ₹5,000–₹6,000 for segments; the exact pricing is unclear in the subtitles. He mentions a 5% discount through Prime Technical support.
• Examples discussed include Adani Enterprises (the subtitles also render a company name as “Adani Ansol,” likely referring to Adani Energy Solutions), Adani Green Energy, Swiggy, Hindalco, Cummins, NTPC, and GE Vernova T&D India (“GVT&D” in the subtitles). The presenter cites a 1:53 risk-to-reward trade in an Adani stock on a budget day, a Cummins move of about 11–12%, and other chart examples reaching at least 1:2. These are illustrations and are not independently verified performance data.
• Platforms and tools mentioned include the NSE website, FYERS One, the Navama app, TradingView, Zerodha, Angel, and ME Broker (as rendered in the subtitles).

Disclosures and Cautions

No formal “not financial advice” disclaimer is heard. The video includes promotional references to Prime Technical’s mentorship and paid data arrangements, alongside strong claims about the strategy’s potential. The examples and performance claims should not be taken as evidence of expected future results.

Presenters and sources: Kushal Varshney (strategy presenter); Uttam (beginner participant); Ganesh from Maharashtra (testimonial about Prime Technical’s boot camp); Prime Technical India (channel).