Home / Markets / Stock Markets /  Multibagger penny stocks for 2022: Sumeet Bagadia recommends these 3 to buy

Multibagger stocks for 2022: Year 2021 was a remarkable year for Indian stock market as the Indian secondary market climbed to its new highs despite global economy reeling under the Covid-19 pandemic. A good number of shares entered the list of multibagger stocks that include BSE SME and some penny stocks too. According to experts, investment in penny stocks is risky as lower liquidity in the stock lead to high volatility after a single trigger. However, if the fundamentals of a small company are strong, then investment in penny stocks may yield much higher return than average benchmark indices return.

Multibaggger penny stocks for 2022

Sumeet Bagadia, Executive Director at Choice Broking lists out 3 penny stocks that may give multibagger return to its shareholders:

1] Suzlon Energy: On a monthly chart, Suzlon Energy share has given a five months breakout and sustained above the prior high of 9.45 made in July 2021. It is also forming an inverse Head & Shoulder pattern, which is a trend reversal indication. Moreover, the price has managed to sustain above Upper Bollinger Band formation, which suggests a bullish strength in the stock. A volume activity is also rising gradually from the last couple of months, which indicates a buying interest among the traders.

On his suggestion to stock market investors in regard to Suzlon Energy shares; Sumeet Bagadia of Choice Broking said, "One can initiate a long position in Suzlon Energy shares around 10 or a fall in the price till 8 levels, can be used as a buying opportunity for the upside target of 15 and 20 while the support is placed at around 6 levels, which could be considered as a stop loss on a closing basis."

2] IFCI: On a monthly scale, IFCI share has given six months consolidation breakout and moved above the prior high of 16.4 levels on June 2021 along with the Accenture volume spurt. On a weekly time frame, the stock has been rising continuously with Higher Highs and Higher Lows formation. In addition, the stock has also given breakout of Bullish Flag pattern with huge volume and again retested the upper band of the pattern, which indicates a bullish set-up in the counter.

Suggesting investors to buy this possible multibagger stock for 2022, Sumeet Bagadia said, "One can initiate a long position in IFCI around 16 or a fall in the price till 14 apiece levels, can be used as a buying opportunity for the upside target of 25 and 30 while the support is placed at around 11 levels, which could be considered as a stop loss on a closing basis."

3] Vodafone Idea: On a monthly chart, the stock has given breakout of its strong resistance level of 13.50 levels and sustained above the same which indicates strength in the counter. On a daily chart, the stock is given breakout of upper band of Symmetrical Triangle line formation which points out upside journey in the counter. Furthermore, the stock has been trading above 100&50 Days Moving Averages which shows a positive trend for the time being. On a weekly chart, the stock has given breakout of Inverse Head & Shoulder Pattern, which is a bullish reversal indication.

Advising investors to buy Vodafone Idea shares for long term, Sumeet Bagadia said, "One can initiate a long position in IDEA at 14 or a fall in the price till 13 levels can be used as a buying opportunity for the upside target of 20 and 25, while the support is placed at around 10 levels, which could be considered as a stop loss on a closing basis." He said that the stock may go up to 28 to 30 apiece levels after 5G rollout this year.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.

ABOUT THE AUTHOR

Asit Manohar

Chief Content Producer at Live Mint Digital Team
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