Penny stocks are highly infamous amongst the active traders. People often fall for these stocks and then finally realize that these stocks are worthless. Penny stocks are gaining good ground in Indian stock market, as fresh inflows and liquidity driving the market higher and higher. After going through 1700+ stocks in NSE, we have compiled a list of penny stocks that are traded on NSE (National stock exchange.
Penny stocks below Rs.10:
You will need to check the charts of these stocks. If the stock has given a breakout then buy positions can be taken. Otherwise, just wait and watch. Since these stocks are not actively traded, liquidity and cost of trading can be significantly high. It is therefore advised to check the best bid / best offer before executing a trade.
Penny stocks usually move when a high-value order is punched, with single order stocks can hit upper circuit. When trading penny stocks always keep in mind never build a huge position in any of these stocks. If the market decided to move in opposite direction then losses can also magnify.
Penny stocks need to be considered cautiously, as one can lose more money when compared to midcap stocks. Also, confirm with your stockbroker, charges such as brokerage and demat charges could cost you higher for these type of holdings. However, those stocks which have given a nice breakout with some news. Can be considered low-risk stocks.