5 Penny Stocks Under ₹10 Attracting Investors. Steel Exchange, Vishwaraj Sugar, Country Condo’s, Reliance Home Finance, and Aksh Optifibre Show Potential for Returns Ranging from 21% to 48% Based on Technical Signals.
Penny Stocks: Investors in the Indian stock market are always on the lookout for stocks that can provide high returns at a low price. Such stocks are called penny stocks. Their prices are ₹10 or even less. Due to their low price, these stocks quickly gain popularity, but they also carry significant risk.
Why Penny Stocks are Attractive but Risky
The specialty of penny stocks is their very low price. If their price increases even slightly, investors see a substantial return. However, their biggest weakness is their very low market capitalization, and they are often at risk of market manipulation.
BSE data indicates that around 100 penny stocks are traded daily. Some of these are also from the A-group, such as Vodafone Idea, GTL Infrastructure, Kesoram Industries, Dish TV, Easy Trip Planners, and Vakrangee.
5 Penny Stocks Showing Potential for Upward Movement
Let's now look at 5 penny stocks where technical charts are indicating a bullish trend, and where returns ranging from 26% to 48% are anticipated.
1. Steel Exchange India
- Current Price: ₹9.50
- Potential Target: ₹12.00
- Potential Return: 26%
The stock's support levels are at ₹9.20 and ₹8.10. Resistance levels are at ₹9.80, ₹10.10, and ₹11.30. If it closes above ₹9.80, it could rise to ₹12. Conversely, if it falls below ₹9.20, it might go down to ₹8.10.
2. Vishwaraj Sugar Industries
- Current Price: ₹9.33
- Potential Target: ₹11.30
- Potential Return: 21%
The stock is currently trading near its 100-day moving average of ₹9.50. If it breaks out above this level, it could reach ₹11.70. Support is at ₹9.00 and ₹8.80, while resistance is at ₹9.50, ₹10.50, and ₹11.00.
3. Country Condo’s
- Current Price: ₹7.25
- Potential Target: ₹10.75
- Potential Return: 48%
This stock is trading in the support zone of ₹6.80–₹6.90. If it remains above this level, it could climb to ₹10.75. It shows the highest potential return. Resistance levels are at ₹8.10, ₹9.10, ₹9.60, and ₹10.20.
4. Reliance Home Finance
- Current Price: ₹4.72
- Potential Target: ₹6.70
- Potential Return: 42%
The stock's key support levels are at ₹4.50 and ₹4.10. As long as it trades above ₹4.50, the possibility of an upward trend remains. Resistance is seen at ₹4.90, ₹5.30, ₹5.50, and ₹6.00. If these levels are breached, the stock could reach ₹6.70.
5. Aksh Optifibre
- Current Price: ₹7.70
- Potential Target: ₹9.70
- Potential Return: 26%
This stock's support is at its 20-day moving average of ₹7.80. If it falls below this level, short-term support will be found at ₹7.10. It could go up to ₹9.60. Intermediate resistance will be at ₹8.30 and ₹9.00.
