These 10 penny stocks have jumped a level up
When penny stocks lock-in at their respective upper circuits for consecutive days, they tend to give higher returns
Penny stocks are known to trade at low rates for a number of reasons. The most common being that a larger portion of the investing community isn’t much inclined towards them and if they do invest, then they exit as soon as they deliver good returns.
Investors tend to stay away from such stocks because either unreliable or less information is available regarding their fundamentals & businesses. However, on the contrary, penny stocks are also known to reward multi-bagger returns within a few trading sessions.
Since such type of stocks are quite illiquid; in most cases, only a few orders can lead to hitting the circuit limit on the exchange. When these stocks lock-in at their respective upper circuits for consecutive days, they tend to give higher returns.
Most of the time, a movement in penny stocks is seen due to some news or turnaround event while other times, owing to strong fundamentals and growth outlook. However, the speculation also leads to an increase in trading volumes and prices soar.
Recently, as many penny stocks were outperforming, a few have shined too well to jump out of the category of penny stocks. If you consider penny stocks as those trading below Rs 10, here is a list for you:
||Returns (per cent)
|Since June 1 TD
|SREI Infrastructure Finance Ltd
|Arcee Industries Ltd
|Reliance Power Ltd
|Andhra Cements Ltd
|Peninsula Land Ltd
|Brightcom Group Ltd
|Fundviser Capital (India) Ltd
|Jump Networks Ltd
|Jaiprakash Associates Ltd