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. 

 

 

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Vishwaraj Sugar Industries

Current Price: ₹9.33  Likely Target: ₹11.30  Upside Potential: 21.1%  Support: ₹9.00; ₹8.80  Resistance: ₹9.50; ₹10.50; ₹11.00  Vishwaraj Sugar stock is seen testing resistance around its 100-Day Moving Average (100-DMA), which stands at ₹9.50, in recent trading sessions. A breakout above the same can help the stock spurt towards the 50-Week Moving Average (50-WMA), which indicates a likely target of ₹11.70. Interim resistance for the stock exists around ₹10.50 and ₹11.00 levels. Bias to remain positive as long as the stock sustains above ₹8.80 on a daily closing basis, with near support seen at ₹9.00. 

 

 

Country Condo's

Current Price: ₹7.25  Likely Target: ₹10.75  Upside Potential: 48.3%  Support: ₹6.90; ₹6.80  Resistance: ₹8.10; ₹9.10; ₹9.60; ₹10.20  Country Condo's stock is seen trading near its key support range of ₹6.80 - ₹6.90, wherein the key moving averages such as the 20-, 50-, 200-DMAs converge. As long as this support zone is respected the stock can attempt a pullback towards 10.70 levels, tested in April earlier. Interim resistance for the stock can be anticipated around ₹8.10, ₹9.10, ₹9.60 and ₹10.20 levels. 

 

 

Reliance Home Finance

Current Price: ₹4.72  Likely Target: ₹6.70  Upside Potential: 42%  Support: ₹4.50; ₹4.10  Resistance: ₹4.90; ₹5:30; ₹5.50; ₹5.00  Reliance Home Finance is likely to trade with a favourable bias as long as the stock holds above ₹4.50 levels; below which the 200-DMA at ₹4.10 may act as a key support. On the upside, the stock can potentially rally towards ₹6.70 levels, with interim resistance likely around ₹4.90, ₹5.30, ₹5.50 and ₹6.00 levels. 

 

 

Aksh Optifibre

Current Price: ₹7.70  Likely Target: ₹9.70  Upside Potential: 26%  Support: ₹7.80; ₹7.10  Resistance: ₹8.30; ₹9.00  Aksh Optifibre stock is seen testing the 20-DMA support at ₹7.80; below which the short-term bullish pivot stands at ₹7.10 levels. On the upside, the stock can potentially pullback to ₹9.60 levels, with interim hurdles likely around ₹8.30 and ₹9.00 levels.