5 penny stocks worth your portfolio that can rally up to 48%

Penny stocks such as Reliance Home Finance, Aksh Optifibre, Steel Exchange India and 2 others, trading below ₹10 per share, seem to be favourably placed on the charts.

Penny stocks in India

 

In India, stocks trading in single-digits or under ₹10 per share are considered as penny stocks. Penny stocks, at times, can generate multi-fold returns owing to prevailing low share prices, but are often associated with high risk, and prone to market price manipulation owing to the limited market capitalisation. Hence, investors need to excercis caution while trading in penny stocks.

 

As per the latest data available from the BSE, there are nearly 100 penny stocks traded daily on the exchange in recent times, which include 6 BSE A-group stocks. In general, shares traded in the BSE A-group are considered as quite liquid and actively traded stocks.

 

The 6 penny stocks from the BSE A-group are as follows - Vodafone Idea, GTL Infrastructure, Kesoram Industries, Dish Tv, Easy Trip Planners and Vakrangee. Further, the BSE data shows that one-fifth of the penny stocks trade below ₹2 per share.

 

5 Penny stocks to buy

 

Here are 5 penny stocks that could rally up to 48 per cent as indicated by the technical charts.

 

Steel Exchange India

Current Price: ₹9.50

 

Likely Target: ₹12.00

 

Upside Potential: 26%

 

Support: ₹9.20; ₹8.10

 

Resistance: ₹9.80; ₹10.10; ₹11.30

 

The key momentum oscillators for Steel Exchange India stock have turned favourable on the daily scale. The stock needs to confirm a close above ₹9.80 on the daily chart to open the doors for a likely rally towards ₹12.00. Intermediate resistance for the stock can be anticipated around ₹10.10 and ₹11.30 levels. The near-term bias is likely to remain hopeful, as long as the stock holds above ₹9.20; below which the stock can fall to ₹8.10 levels.