Set the digital multimeter dial on highest resistance in ohm section.
Connect the probes to two ends of the unknown component (ignore polarity).
If reading shows zero, it is an inductor.
If reading shows some constant value other than “1” then it is a resistor.
If reading keeps increasing and finally settles on “1” then it is a capacitor. This will happen only the first time you measure. For checking again you should shot both ends of the component for 2–5 seconds and then measure again.
If reading shows constant “1” then it could be a capacitor or resistor. Follow following steps to identify
Reverse the probes and check reading.
If reading keeps increasing and finally settles on “1” then it is a capacitor and the positive, negative is according to the terminals of multimeter connected.
If reading still shows “1” then decrease the resistance range using dial and check reading. Keep decreasing and checking till the display shows some other value than “1”. This is a resistor with the shown value.