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Is it a Good Idea to Invest in Penny Stocks?
Multibagger Penny Stocks for 2024 Stock markets provide you an opportunity to make huge capital appreciation by allowing you to make little investment on penny stocks. Although it involves a high risk. Do you want to make huge money by investing in single digit low price penny shares? Yes of course,Read more
Multibagger Penny Stocks for 2024
Stock markets provide you an opportunity to make huge capital appreciation by allowing you to make little investment on penny stocks. Although it involves a high risk.
Do you want to make huge money by investing in single digit low price penny shares? Yes of course, is it not? So, don’t skip your read as we approach you with practical examples of penny stocks and suggestions to opt for the right ones.
From 10000 to 26 Lakhs in Just 3 Months
For instance,
You can get to know about SEL Manufacturing (Textile Company), a small capital company, which had their penny stocks @ INR 0.35 began to rally and reached INR 91.8 in just 3 months, thus rising by 26000 percent.
Imagine if you had invested about INR 10,000 in SEL manufacturing then you will have made INR 26 lakhs in just three months.
We are sure that such information will make you join the list of investors/traders to make huge profits by making small investments in penny stocks.
Read important observations, never mind the high risk factor, just follow the guidance.
Penny Stock with Share Price Less than 1 Rupee:
A detailed information on the high yield performers of penny stock companies such as SEL Manufacturing, and Alps Motor Finance.
Multibagger Penny Stocks move on for a stock split:
Multibagger Penny Stock whose price is below INR 20 goes for stock split after the script gains 154 % YTD: Square Four Projects India Ltd., a microcap firm.
Good Signal to Buy Companies Penny Shares having Debt to equity ratio of zero:
Companies Must be sought for in penny stocks too. So, here are the practical examples that can be more comforting for an investment.
They are, namely, Coral India Finance & Housing Ltd, Oswal Agro Mills Ltd, and Jullundur Motor Agency Delhi Ltd.
See lessWhich is the Best Penny Stock Under 1 Rupee?
Best Multibagger Penny Stocks under Rs. 1 1. SEL Manufacturing You may be surprised to notice the startling figures illustrated above, of SEL Manufacturing, a penny stock company that was once hit by severe bankruptcy. The company reported a net loss during the first half of the current fiscal year.Read more
Best Multibagger Penny Stocks under Rs. 1
1. SEL Manufacturing
You may be surprised to notice the startling figures illustrated above, of SEL Manufacturing, a penny stock company that was once hit by severe bankruptcy. The company reported a net loss during the first half of the current fiscal year.
SEL Manufacturing, a Ludhiana based company, operates in manufacturing textiles under various segments like cotton yarn, combed yarn, knitted fabrics, knitted garments, and terry towels.
In a nutshell, SEL Manufacturing gave highly unexceptional performance: In a 3 month period, the stock rose from INR 0.35 to INR 91.8 which means for an investment of INR 10,000 it received a return of INR 26 Lakhs.
2. Alps Motor Finance:
If you visualise companies like Alps Motor Finance then you will be astonished to notice that you can make 70 percent and it happened in 2022.
It was observed that the sensex rose by 3.30 percent during this period. Beware, some penny stocks maintain a sub-standard fundamentals hence only the right stock can lead to life time’s great returns.
See lessBest Penny Stocks to Invest Under Rs. 20?
Best Multibagger Penny Stock 2024 1. Square Four Projects India Ltd. Headquartered in Kolkata, West Bengal, Square Four Projects India Ltd., is a microcap firm that holds a market capital of INR 19.95 crore. Operating in the real estate sector, has declared a stock split to make the company shares mRead more
Best Multibagger Penny Stock 2024
1. Square Four Projects India Ltd.
Headquartered in Kolkata, West Bengal, Square Four Projects India Ltd., is a microcap firm that holds a market capital of INR 19.95 crore.
Operating in the real estate sector, has declared a stock split to make the company shares more accessible and increase the affordability for their shareholders.
On 20 July 2023, the company fixed the record date to sub-divide the equity share from INR 10/- to INR 5/- in the stock exchange.
The stock made remarkable moves in the Bombay Stock Exchange, all-time high was INR 22.09 (17/04/2023) and 52-week low was INR 8.01 (26/12/2022).
Through the last financial year, 2022-23, the stock price gained about 11.15 percent from INR 18.30 to INR 20.34 as on 11th July, 2023.
According to the YTD basis, the stock price rose from INR 8.03 yielding a return of 153.30 percent in 2023.
In the span of six months, the multibagger return rose to 145.06 percent from INR 8.30.
More interestingly, the stock has gone up by 33.29% in the previous month and through the last five trading sessions, the stock value rose by 10.18 percent.
2. SEL Manufacturing
The second best multibagger penny stock to invest is SEL Manufacturing.
SEL Manufacturing company has given a huge returns to the investors.
In a 3 month period, the stock rose from INR 0.35 to INR 91.8 which means for an investment of INR 10,000 it received a return of INR 26 Lakhs.
You may be surprised to notice the startling figures illustrated above, of SEL Manufacturing, a penny stock company that was once hit by severe bankruptcy. The company reported a net loss during the first half of the current fiscal year.
SEL Manufacturing, a Ludhiana based company, operates in manufacturing textiles under various segments like cotton yarn, combed yarn, knitted fabrics, knitted garments, and terry towels.
See lessDebt Free Penny Stocks Below 1 Rupee
Top Penny Stocks Under Rs 1 - Low Risk, High Reward The below-listed stocks are absolutely debt-free and multi-bagger penny stocks. The following stocks are as per my fundamental analysis. I am not suggesting you to invest blindly, do your own research before investing. 1. Coral India Finance and HoRead more
Top Penny Stocks Under Rs 1 – Low Risk, High Reward
The below-listed stocks are absolutely debt-free and multi-bagger penny stocks. The following stocks are as per my fundamental analysis.
I am not suggesting you to invest blindly, do your own research before investing.
1. Coral India Finance and Housing Ltd.
Coral India Finance and Housing Ltd. – a Debt-Free Multibagger Penny Stock
Coral India Finance & Housing Ltd. (Real Estate Industry) is listed under the penny stock category and its performance makes it a multi-bagger. The company belongs to the small-cap, and the market capitalization is INR 143 crore.
The company holds a record of having a debt-to-equity ratio equal to zero for five years which indicates the company is completely debt-free.
When compared with the previous trading sessions, on July 21, the share price is up by 0.14 percent and is at INR 35.65 per share.
In the financial year, FY23, the company had impressive growth in ROE (12.4 %), and ROCE (14.0 %) respectively.
In FY 22-23, the revenue growth was 7 percent when compared with FY 21-22. The company’s year-on-year growth was at INR 29 crore.
The net profit made significant progress from INR 17 crore in FY 21-22 to INR 18 crore in FY 22-23.
With such impressive performances, you should miss out on participating in trading, Coral India Finance & Housing Ltd, multi-bagger penny stocks.
2. Oswal Agro Mills Ltd.
Oswal Agro Mills Ltd – A Debt-Free Multibagger Penny Stock
Oswal Agro Mills Ltd. is a small-cap company with a market capitalization of INR 386 and was listed under the penny stocks.
The company is immersed in conducting trades and developing real estate, does item trading, and invests its excess cash by issuing loans in the form of inter-corporate deposits. The company shares trade at INR 28.80 per share.
In contrast to the previous trading session, the company share went down by 0.52 percent to INR 28.80.
The important parameters like Return on Investment (ROI) and Return on Capital Employment (ROCE) touched 2.86 percent and 1.93 percent respectively.
The company made a good sale, it spiraled by 145 percent to 27 crore in FY 22-23 and the net profit rose by 350 percent to 9 crore.
With such a progressive growth in the performance of the stocks, you can think it about buying these penny stocks.
3. Jullundur Motor Agency Delhi Ltd
Jullundur Motor Agency, Delhi Ltd is one of the leading vehicle spare parts distribution firms, the company has attained expertise in trading and entertains the distribution channel of vehicle parts, accessories, and gasoline supplies.
On July 21, 2023, the price per share was INR 71.80 and in fact, went down by 1.31 percent from the previous session.
The significant elements that infuse you to opt for Jullundur Motor Agency shares are the following upswing figures.
First, the company is a completely debt-free multi-bagger penny stock that represents a loan-free firm. Something you can think of to purchase it.
Second, in FY23, the company’s ROE/ROCE was 13.21/17.65 and the revenue rose by 15 percent to 503 crore in reference to the previous year FY22. Meanwhile, the net profit weighed by 12 percent to INR 27 crore.
Features of Penny Stocks:
Penny stocks begin with a single-digit low price, less than INR 10 and with this feature made available, you can buy more penny shares with a small capital investment.
Penny stocks yield huge capital appreciation on selecting the companies that hold good market fundamentals over the long term.
Penny stocks are high-risk investments and you are advised to approach them with caution. Hence, experts suggest you do detailed research before making an investment in penny stocks.
Providing suggestions for purchase of the upcoming well-to-do penny stocks in the year ahead, 2023-24 for you.
Best Companies Where You CAN Buy Stocks in July 2023
List of the best penny stocks whose stock price is less than 1 Rupee
List of the Penny Stocks Below INR 1 @NSE as of March 30, 2023 (Forbes Official Website)
List of the Penny stocks below INR 1 @BSE as of March 30, 2023 (Courtesy: Forbes Official Website)
Benefit in Investing in Penny Stocks Below INR 1
You shall benefit from penny stocks below INR 1 as these stocks get multiplied quite easily.
If you happen to purchase 100 stocks for 0.5 percent per share and the sector projects a positive slide by 90 percent then the investment value reaches INR 4500 from INR 50.
And, equally a negative slide is a fall in the share price can cause a huge loss. Hence, you need to get prepared for a calculated risk.
Important Observations:
The stock markets rallied very high during covid-19 and strangely several smallcap, midcap, and largecap peers had spiraled. However, experts say that you must be calculative and be ready to take risks.
The stock markets are highly volatile, before considering a penny stock you must analyze the chosen company’s revenue model. In addition, you check for the sustainability of the business operations.
See lessCan I Earn 500 Per Day in Swing Trading?
How to Earn 500 per Day in Swing Trading Your question on earning 500 per day in swing trading is pretty logical in nature. But, let me tell you, I would like to elucidate the essentials that should be kept into consideration. Just to earn a profit of at least 5 percent per day on an investment of IRead more
How to Earn 500 per Day in Swing Trading
Your question on earning 500 per day in swing trading is pretty logical in nature. But, let me tell you, I would like to elucidate the essentials that should be kept into consideration. Just to earn a profit of at least 5 percent per day on an investment of INR 100,00.00 daily.
For instance, you need to set a monthly target of at least 25 % profit. If you sum up the small profits on the invested amount of Rs. 100,00, it shall provide a return of Rs. 1.45 lakh in a year. And, if you spread the earned money (Rs. 1.45 lakh) it will make a daily profit of Rs. 500 over a year.
Below you will notice information that can serve your purpose in maintaining INR 500 as your daily earnings.
Research for Swing Trading Stocks:
For obtaining an objective of earning INR 500.00 per day, swing trades need fundamental analysis for a short period.
You will have to adopt recent, upcoming events, and tactics. You must calibrate certain parameters that turn out to be the significant indicators such as sales growth, new product launches, new strategy announcements by the companies, quick ratios, etc.
5% to 10% Gain Every Week in Swing Trading:
Swing trades never focus on gains developed over months, or even years. Its trading period is normally 5 to 10 days and if managed properly you can make a lot of small wins. And, when you sum up those wins it will give out good returns.
The ideal return on swing trades is up by 20% in a month or about 5% to 10% gain every week that leads to a noticeable profit level.
3-to-1 Profit loss Portfolio Management Strategy:
Experts suggest portfolio management to succeed in your attempts to earn decently, often referred to as 3-to-1 profit-to-loss ratio.
The funda of earning is that you can make small gains and create a growth in portfolio provided you are attentive in keeping losses small.
If you keep a stop loss of 7% to 8%, then the losses on stocks can reach a maximum level of 3% to 4% quickly. If such a situation continues then this kind of loss can reduce the accumulated small gains considerably.
Identify Breakout Volumes for Shorter Time Frames:
Observe for the shorter time frames with a token, and you can find volume characteristics of a breakout. Also find the volume of shorter consolidations areas for clues.
If you can sense that the breakout volume can surpass the recent activity then it means the stocks have strength on trade. And you can opt for such stocks.
See lessWhat is Option Buying and How Does it Work?
How does Option Buying Work? Option Buying: If you are planning for the purchase of stocks in share markets it can happen in this manner. In option contracts, you can derive your buying/selling options by applying option strategies to make maximum profits as per your trading plans. Fundamentally, yoRead more
How does Option Buying Work?
Option Buying:
If you are planning for the purchase of stocks in share markets it can happen in this manner. In option contracts, you can derive your buying/selling options by applying option strategies to make maximum profits as per your trading plans.
Fundamentally, you will find four kinds of option strategies employed by stock exchange traders/investors. To obtain better results in the buying of stocks of the underlying assets, you can adopt option long call, option short call, and option long put in the option buying strategies. Below you will find me explaining the long call option in short.
When employing the strategies to meet your trading plans you must know the risk profiles involved while implementing the four basic options. They are ‘buying a call,’ ‘buying a put,’ ‘writing a call,’ & ‘writing a put.’ They can be described in brief.
Buying a Call:
In this case, the common notion is, the stocks will rise thereby representing a bullish trend. In such a scenario, the risk is limited to the premium paid and you can seek maximum rewards if you are involved in ‘buying a call.’
Buying a Put:
In this case, you will proceed to buy a put only when you observe a bearish outlook. Here too, the risk is limited to the premium paid, you can gain maximum rewards until the strike price of the underlying asset is less than the premium paid.
Writing a Call:
In such a situation, the stock will fall showing a bearish outlook and maximum rewards shall be limited to the premium received. When the stock price rises, you can encounter an unlimited potential risk. When a risk arises you can combine with another position to limit the risk.
Writing a Put:
You will execute a put option with a faith that the stock will have a bullish approach. In this case, the risk is unlimited to a maximum to an extent of the strike price less the premium received. You can seek a maximum reward that is limited to the premium received. You can opt to combine with another position to limit the risk.
Trading a Long Call:
Long Call is an option to buy and when you do so, you will also anticipate the underlying share price to rise.
You may prefer to buy an option contract or S&P future options, then you need to step in to purchase stocks and step out by selling those stocks to generate adequate profits.
For instance, in the NASDAQ, one contract is for 100 shares and the price of 1.00 dollar per share is applicable, therefore you will have to pay 100 dollars per contract. While in case of S&P future options, you will have to make 250 dollars for one future contract when exercised and each contract comprises 100 shares.
Step-in Long Call Trading:
You must step into a long call trading, when the stock market trend is upward, and has a support.
Step-out Long Call Trading:
You must step out, that means, sell your long options before the final month before expiration just to avoid the effects of time decay.
In case, the stock triggers down below the stop loss, then the best way to limit the loss is to sell the calls.
Stock Selection/Stock Sell-out Period:
You must select the stock that holds adequate liquidity somewhere like 500,000 average daily volume (ADV).
When selecting the option, the open interest must be from 100 onwards and 500 is preferable.
You must sell out at either the ATM (stock price equal to strike price) or ITM where the strike is below the current stock.
You must choose the option at least three months before the expiration date.
See lessHow to Analyse Option Chain?
How to read an Option Chain You have popped up a nice question on ways to analyse option chains. Such thoughts will arise only when you are determined to book profits in share markets. Let me tell you, having minimum experience in analysing option chains, I could make decent money in option contracRead more
How to read an Option Chain
You have popped up a nice question on ways to analyse option chains. Such thoughts will arise only when you are determined to book profits in share markets.
Let me tell you, having minimum experience in analysing option chains, I could make decent money in option contracts. Below I share a significant way of analysing option chains on Indian Derivatives.
Benefits of Option Chain Analysis
Usually before the begin of a trade, trader will apply option chain analysis methodology to derive specific aspects. They can be specified as:
Parameters to Analyse Option Contracts in Option Chain:
Charting: Charting is pictorial representation of the option contracts of an underlying asset and the charting techniques include bar charts, line charts, and candlestick charts.
Technical Analysis: By adopting mathematical and statistical modeling the technical analysis will help you in identifying stock patterns, and trends in the NSE/BSE markets.
The patterns include support, and resistance levels, trend lines and specific technical indicators that enable for better decision making on a trade.
Fundamental Analysis: The price of the options are highly dependent on the economic indicators such as company’s performance, reports, and news events. In fact, you will be able to define the intrinsic value of your chosen option that helps you to have accuracy in trading decisions.
Greek Analysis: It enables you in understanding the sensitivities of the options in respect to different market factors. These can be marked as asset price, volatility, and the time decay. When you adopt different trading strategies, greek options help you in making better informed decisions.
Implied Volatility Analysis: It helps you in identifying mispricing in the option markets and from which you can design newer strategies to encounter it.
Options Spread Analysis: It involves the examination of the prices of different options for the same underlying assets. From it, you will be able to identify opportunities for trading spreads like horizontal/Vertical/Diagonal spreads.
Option spread analysis will enable you in limiting the risk factors and improvise the profits in different market conditions.
Summarize:
I am hopeful that you could understand the outlines of the option chain analysis and path incorporated in the analytics.
However, in nutshell, by adopting the option trading analysis, you will be able to identify the trading opportunities, adopt better risk management, and gain a better understanding of the ongoing market behavior.
In the end, you will be able to enhance your trading potential in the stock market scenario.
See less