To predict the stock price movement is key to success in intraday trading. Though it is very difficult to predict the same we can take help of some data points to predict the stock price movement. One such data point is the closing price of Indian ADRs in USA stock markets.
I observed a close co-relation between the stock price movement in Indian Market and the Indian ADR price. I keep a watch on 7 stocks using this technique i.e. Infosys, ICICI Bank, HDFC Bank, Vedanta, Wipro, Dr. Reddy and Tata Motors.
I execute a trade in the market direction. By doing this the most of the trades are profitable. Also, i found strong co-relation in case of highly volatile stocks. This co-relation in stock price movement is mainly applicable at the opening of Indian Stock Market.
