The year 2021 was a remarkable year for the Indian stock market as the global economy was facing difficulties due to the Covid-19 pandemic while the Indian secondary market was hitting new highs. A large number of stocks entered the list of multibagger stocks including BSE SME and some penny stocks. According to experts, investing in penny stocks is risky as it creates high volatility due to low liquidity in the stock. However, if a small company’s fundamentals are strong, investing in penny stocks can deliver returns much higher than the average benchmark index return.
According to a Mint report, Sumeet Bagadia of Choice Broking has suggested 3 penny stocks that can give multibagger returns to their shareholders:
1]Suzlon Energy: On the Monthly chart, Suzlon Energy stock has given a five-month breakout and remains above the prior high of Rs 9.45 created in July 2021.
Sumeet Bagadiya of Choice Broking commented on the stock of Suzlon Energy “Investor can take a long position in Suzlon Energy shares near Rs 10 or Rs 8 for downside, with targets above Rs 15 and Rs 20, while support is at Rs 6 with stoploss at Rs. can be imposed.”
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2]IFCI: On Monthly chart, IFCI stock has given a six-month consolidation breakout and Accenture has moved up from the prior high of Rs 16.4 in June 2021 with a rise in volumes.
Sumeet Bagadiya of Choice Broking commented on IFCI’s stock “If anyone wants to take a long position in IFCI shares around Rs 16 or at the level of Rs 14 on fall, it can see targets above Rs 25 and Rs 30, while its support level is at Rs 11, which But stoploss can be imposed.
3]Vodafone Idea: On Monthly chart, the stock has given a breakout of its strong resistance level of ₹13.50 and remains above the same which indicates strength in the counter. On the daily chart, the stock has given a breakout at the upper band of the symmetrical triangle line formation which indicates an upside move in the counter.
Sumeet Bagadiya of Choice Broking commented on IFCI’s stock “If anyone wants to take a long position in the shares of IFCI around Rs 14 or on the downside, it can see targets above Rs 20 and Rs 25, while its support level is at Rs 10, which But stoploss can be imposed. Sumeet said that after the 5G rollout this year, the level of 28 to 30 rupees can be seen in it.
(Disclaimer: The views and investment advice given on moneycontrol.com are the personal views and opinions of investment experts. Moneycontrol advises users to consult a certified expert before making any investment decision.)