Penny stocks are highly infamous amongst the active traders. People often fall for these stocks and then finally realize that these stocks are worthless. These stocks are gaining good ground in the 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:Penny stocks list, trading below Rs.10. But some of these stocks have gone way too high, I have not deleted those stocks. Look at the price as a motivation for investing in Penny stocks. (Price as on 7 February 2019).
|Serial Number||Stock Symbol (NSE)||Price (in Indian Rupees)|
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 just a few orders stocks can hit their 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 the opposite direction then losses can also magnify.
Penny stocks need to be considered cautiously, as you 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, the stocks which have given a nice breakout along with some news. Can be considered low-risk stocks.
Trading in penny stocks is like buying a lottery ticket. You can win a jackpot or you will lose all, so be very careful. I personally don’t like trading in penny stocks. Instead, I would prefer buying OTM (out of the money) bank nifty call or put option on expiry day. The risk would be very limited, but potential gains could be extremely high.
Taking positions using directional spreads on options can be more profitable.
If you are interested in options trading course, you can call me on +91-9970777789.