DOUBLE KAMAAL! Five Penny Stock Gives 20% Returns, Hit New 52-Week Highs In 1 Day; Do You Own Any?

Indian stock market continued to fall for the third consecutive day with Sensex and Nifty key psychological levels. But amidst this bearish market, five many penny stocks faced an uproar of bulls to the point they touched their upper circuits and gave 20% returns in a single day. The majority of them even touched new 52-week highs. It was a double kamaal aka double awesome in these stocks.

These stocks are broadly with a market cap of below Rs 500 crore.

Here are the details of these five penny stocks that shrugged off the extreme bearish tone of the market on January 18:

1. Krishanveer Forge:

The stock hit its 20% upper circuit of Rs 86.98 apiece, it was also its new 52-week high level. The stock ended however at Rs 85.55 apiece, up by 18.02% on BSE with m-cap of Rs 93.59 crore.

As per Trendlyne data, the stock's weekly average delivery volume is 70.41%, and is trading 8 out of 8 SMAs, and above 5 out of 9 Oscillators in the bullish zone.

Krishanveer Forge, formerly known as Rajkumar Forge is engaged in the business of manufacturing and selling open die forgings in both domestic and international markets.

2. Golkunda Diamonds & Jewellery:

This gems and jewellery stock touched a new 52-week high of Rs 273.30 apiece before ending at Rs 272.50 apiece on BSE, up by 20% with m-cap of Rs 189.77 crore.

The stock's weekly average delivery volume is 49.69%. It is trading above 8 out of 8 SMAs, and above 7 out of 9 Oscillators in the bullish zone.

The company is a leading manufacturer of diamond studded gold jewellery from India exporting exquisite Diamond jewellery to customers across the world.

3. Indrayani Biotech:

This engineering stock froze at its 20% upper circuit at Rs 74.50 apiece on BSE with a market cap of Rs 254.99 crore.

Indrayani Biotech Limited (IBL) has business operations in the fields of Food and Hospitality, Dairy, Healthcare & Pharma, Engineering, Biotech, Agriculture and Infrastructure.

4. Anjani Finance:

NBFC stock also froze at 20% upper circuit of Rs 14.88 apiece on BSE with a market cap of Rs 15.09 crore. This is also its 52-week high level.

The company was originally incorporated as Gujrat Guarantee and Financial, however, in 2001, it changed its name to Anjani Finance an NBFC, Investment and Loan company registered under RBI. The Company was incorporated with the objects to provide money with or without security to such persons or bodies corporate and to acquire, hold, sell, buy or otherwise deal in any shares, stocks, debentures, bonds, mortgages, obligations and other securities.

5. Zenlabs Ethica:

Pharma stock locked at its 20% upper circuit of Rs 52.02 apiece on BSE with a market cap of Rs 33.87 crore.

Zenlab offers more than 600 products across therapeutic segments, making it a leader among pharmaceutical companies in India. Success has been forthcoming with judicious utilisation of resources and a thoroughly planned approach to everyday business operations. Riding on this success, it has forayed into diversified segments like Neurology and Cytrics.

Three Pros and Cons of Penny Stocks:

Religare Broking has highlighted the pros and cons of penny stocks:

Pros:

1. Diversification: Due to their low prices, it enables investors to diversify their portfolios more extensively. Investors can spread their investments across multiple stocks, potentially reducing overall portfolio risk.

2. Learning Opportunities: Investing in this stock can provide valuable learning experiences for novice investors. Analysing these stocks, understanding market trends, and conducting research can offer practical insights into stock market dynamics and investment strategies.

3. Rapid Growth Potential: Some stocks represent companies with innovative ideas or new technologies. If successful, these companies have the potential for rapid growth, offering substantial returns to investors who identified them early in their growth trajectory.

Cons:

1. High Volatility and Risk: Penny stocks are highly volatile and speculative, increasing the risk of significant losses. Their unpredictable nature can lead to sudden price drops, causing substantial financial setbacks for investors.

2. Lack of Liquidity and Limited Information: Limited trading volumes and information make it challenging to buy or sell these stocks without impacting their prices. Additionally, these stocks often lack comprehensive public information, making thorough research difficult.

3. Potential for Fraud and Manipulation: Penny stocks are susceptible to market manipulation and fraudulent schemes due to lower regulatory oversight. This can expose investors to increased risks of scams and deceptive practices within this segment of the stock market.

Disclaimer: These are just highlights of the stocks and are not a recommendation to buy, sell or hold. We have not done fundamental or technical analysis and have no opinion on the stock mentioned. Neither, the author nor Greynium Information Technologies should be held liable for any losses. Please consult a professional advisor.