Top 5 Penny Stocks Priced Under ₹17 to Watch in the Monday Market
The stock market experienced significant selling pressure on Friday, September 6, 2024, with bears taking control after several days of upward movement. The Nifty index decisively broke below the crucial support level of 25,000, closing at 24,852.15, marking a decline of 292.95 points or 1.17% for the day. This decline represents the largest single-day drop since early August and signals a potential shift in market sentiment from bullish to bearish.
Main Points
Market Overview
The Nifty’s break below the 25,000 mark has raised concerns among traders and investors, as this level has been a significant psychological barrier. Analysts suggest that this could lead to further declines, with the next support levels identified at 24,800 and 24,600. Conversely, resistance is now expected at the 25,000 level, which may act as a barrier to any potential recovery in the near term.
Technical Indicators
The formation of a long bearish candle on the daily chart indicates a sharp downside reversal. The Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) are both showing negative crossovers, suggesting continued weakness in the market. The overall sentiment remains indecisive, with many traders adopting a cautious approach as they await clearer signals from the market.
Penny Stocks to Watch
Despite the overall market downturn, several penny stocks are showing resilience and may present buying opportunities for investors. Here are some notable mentions:
1. Retro Green Revolution
This stock closed at ₹11.15, marking a 13.90% increase. With buyers remaining active, it is expected to continue its upward trend into Monday’s trading session.
2. Decorous Investment & Trading
Decorous Investment’s shares rose by 10% to close at ₹10.49. Analysts predict that the positive momentum will carry over into the next trading day.
3. Rama Steel Tubes
Rama Steel Tubes saw a significant gain of 19.10%, closing at ₹16.52. The stock has been attracting buyers, and its upward trend is likely to persist.
4. Sarveshwar Foods
The stock of Sarveshwar Foods increased by 10%, closing at ₹9.68. There is a strong likelihood of continued buyer interest in the upcoming sessions.
5. Systematix Securities
Systematix Securities ended the day at ₹8.25, up by 10%. This penny stock is also expected to show gains in the following trading day.
Expert Insights
Market analysts are closely monitoring the Nifty’s performance, particularly regarding the 24,800 and 24,600 support levels. If these levels hold, there may be opportunities for a rebound. However, if the index breaks below these points, further selling pressure could ensue. Traders are advised to adopt a “buy on dips” strategy, particularly around the support zones, while being cautious of the resistance at 25,000.
Note: The information given in this article is from investment experts and brokerage companies, they do not represent Local Haryana. Before taking any investment related decision, you must consult a certified expert.
