As of August 08, 2024, as many as 195 out of 2,791 stocks traded on the National Stock Exchange (NSE) quoted below Rs 20-mark; this implies 1 out of every near about 14 stocks traded below Rs 20 as of date. Out of 195, a total of 105 stocks had closed below the Rs 10-level.
Stocks quoted at such low prices are commonly referred to as penny stocks. These are stocks mostly of small companies with low market capitalisation. Because of the low value, these stocks have the potential to turn into multi-baggers and at times also attract unscrupulous speculative trading activity; hence one should be aware of the associated risks.
Analysis of the current chart patterns suggest that these 10 penny stocks, trading in the range of Rs 6 – Rs 20, can potentially upside up to 75 per cent from the present levels.
Sadbhav Infra Projects
Current Price: Rs 6.30
Upside Potential: 74.6%
Support: Rs 5.99; Rs 5.91
Resistance: Rs 6.45; Rs 7.86
However, given the positive crossovers of the key momentum oscillators on multiple time-frames. The stock may attempt to break on the upside. Sustained trade above Rs 6.45 levels can trigger a rally towards Rs 11, with interim resistance seen at Rs 7.86.
DCM Financial Services
Current Price: Rs 5.98
Upside Potential: 42%
Support: Rs 6; Rs 5.95; Rs 5.59
Resistance: Rs 6.40; Rs 6.61
DCM Financial Services stock is seen trading above its 20- and 50-DMA, which stand at Rs 6 and Rs 5.95, respectively. On the weekly scale, the stock has consistently managed to sustain above its 20-WMA (Weekly Moving Average) on a closing basis since mid-May. The 20-WMA support stands at Rs 5.59.
B.A.G Films
Current Price: Rs 8.73
Upside Potential: 48.9%
Support: Rs 7.50; Rs 6.78
Resistance: Rs 9.75
B.A.G. Films has retraced sharply from its high of Rs 15.40 in January 2024. The stock is now seen attempting to hold the support at its 20-MMA (Monthly Moving Average), which stands at Rs 7.50; below which the next key support exists at Rs 6.78.
Aksh Optifibre
Current Price: Rs 9.14
Upside Potential: 58.6%
Support: Rs 8.15
Resistance: Rs 10; Rs 10.43; Rs 12.18
Aksh Optifibre stock recently tested its 200-DMA after a gap of 5 months. Further, the stock is seen making higher-highs and higher-lows on the daily scale in the last two months.
Yaari Digital Integrated Services
Current Price: Rs 9.94
Upside Potential: 49.4%
Support: Rs 9.33
Resistance: Rs 10.77; Rs 12.15
Yaari Digital stock witnessed a run-away gap at the start of this month. The daily chart shows that the stock is likely to remain bullish as long as it holds above Rs 9.33. On the upside, the stock is seen facing resistance around the higher-end of the Bollinger Bands at Rs 10.77.
Rama Steel Tubes
Current Price: Rs 10.89
Upside Potential: 31.3%
Support: Rs 9.87
Resistance: Rs 11.40; Rs 13.09
Rama Steel Tubes is seen trading in an extremely narrow band of Rs 9.87 – Rs 11.40 on the daily scale. The price-to-moving averages action seems negative for the stock. However, the key momentum oscillators have shown positive crossover on the weekly time-frame; hence may attempt an upside breakout in the near-term.
Heads Up Venture
Current Price: Rs 12.16
Upside Potential: 26.6%
Support: Rs 12; Rs 11.84; Rs 11.26
Resistance: Rs 12.93; Rs 13.57; Rs 14
Heads Up Venture stock is seen consolidating above its 20-DMA in recent trading sessions. The 20-DMA stands at Rs 12, below which the next support is at Rs 11.84. Further, the weekly chart shows that the stock has consistently found support around its super trend line at Rs 11.26 for nearly 3 months now.
That apart, key momentum oscillators have shown positive crossover on the weekly time-frame. Hence, the stock may attempt to rally in the near-term.
Steel Exchange India
Current Price: Rs 13.13
Upside Potential: 14%
Support: Rs 12.91; Rs 11.65; Rs 11.22
Resistance: Rs 13.76
Steel Exchange India stock is seen testing the 200-DMA for the fourth time this year post the breakout on January 24, 2024. During this period, the stock has hit a high of Rs 18.40 and a low of Rs 11.65. The 200-DMA at present stands at Rs 12.91 and it coincides with the super trend line support. On the downside, the next major support stands at Rs 11.22.
Parsvanath Developers
Current Price: Rs 17.35
Upside Potential: 34%
Support: Rs 16.90; Rs 15.82
Resistance: Rs 18.26; Rs 20.50
Last week, Parsvanath Developers gave a breakout on the weekly scale. The short-term bias is likely to remain positive as long as the stock trades above Rs 16.90 levels; below which the next significant support stands at Rs 15.82.
California Software
Current Price: Rs 17.35
Upside Potential: 37.6%
Support: Rs 16.91; Rs 16.36; Rs 15.64
Resistance: Rs 19.29; Rs 19.90; Rs 22.43
The key momentum oscillators for California Software stock are seen favourable across time-frames. On the charts, support for the stock is visible at Rs 16.91, Rs 16.36 and Rs 15.64 levels.
First Published: Aug 09 2024 | 1:05 PM IST
