Check out the penny stocks that are set for an upside on Williams %R chart

by 5paisa Research Team Last Updated: 2022-04-06T12:20:44+05:30

The Indian stock market is consolidating after regaining almost all of the lost momentum in the bloodbath last month that took the indices around 15% below their peak in October last year. Even though a sharp rise in oil prices after Russia’s invasion of Ukraine remains a worrying factor, bulls have been able to push back the markets to close to the all-time peak.

Investors looking at charts and price and volume patterns have various parameters to decide whether a stock is ripe for the pick or is showing signals of weakness and is best left untouched.

We picked a metric called Williams %R, which is a momentum indicator that can signal bullish or bearish trends for a stock.

Developed by Larry Williams, Williams %R is the inverse of the Fast Stochastic Oscillator. Its reading varies between 0 and -100, with 0 to -20 indicating an overbought range and -80 to -100 being seen as an oversold zone.

Many traders play in the penny stocks arena where the volatility is high and liquidity is low. These are risky bets at large but also offer a ground for making money.

We ran an exercise to see which penny stocks are in the bullish zone as per Williams %R. In particular, we looked at stocks with a market cap of under Rs 50 crore, price in single or double digits at best and the William %R just crossing over -80 mark from the previous score at that level. We spotted around 90 such penny stocks, which could be set for a trend reversal.

Filtering them from the top end of their market cap, we get names like Madhucon Projects, Delton Cables, B2B Software Tech, PCS Technology, Acme Resources, Khoobsurat, Gian Life Care, Emergent Industrial, Cranes Software, Power & Inst, Saptarishi Agro, Utique Enterprises, Aryaman Capital, HEC Infra Projects and Tirupati Foam.

Lower down the order, we have stocks such as Ashirwad Capital, Transgene Biotek, TTI Enterprise, CNI Research, Samtex Fashions, Maxheights Infra, Riddhi Steel, Osiajee Texfab, RMC Switchgears, Mittal Life Style, Globe International, Siddhika Coatings, Expo Gas Containers, N K Industries and Panafic Industrials.

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