Yes, you will be able to sell the next day.
As explained in this post
Margin for BTST trades
If the stock is sitting in your demat account, it can be debited from your demat and given to the exchanges on the same day you sell to avoid margin requirements as explained above. But when you buy today and sell tomorrow (BTST), you still don’t have the stock in your demat yet, as it takes two days to get credited. Which means that to sell a share the immediate next day after buying, you will now need VaR+ELM margin. So if you buy Reliance today for Rs 1 lakh, you will need Rs 22,000 in your account tomorrow to be able to sell it.
One workaround for brokers like us who collect full money upfront for equity delivery trades is that, on T day, even though we debit 100% of the money from your account upfront, we report only VaR+ELM to the exchange. The next day to sell, there will be sufficient VaR+ELM to allow you to sell. So for example, if you had Rs 1 lakh with which you bought Reliance, we block and report Rs 22,000 as VaR+ELM on T day. On T+1 day, to sell Rs 1 lakh of Reliance, we will report Rs 22,000 from the remaining Rs 78,000 in your account as margin available. What this means is that we can allow BTST trades (if you have no other money in your account) on stocks where VaR+ELM is less than 50% . Since the top 1500 stocks have VaR+ELM less than 50%, this also wouldn’t be a big deal for online brokers like us who collect full money for delivery trades when taking the trade.