₹8 to ₹17: Penny stocks turns multibagger in 6 months. More steam left?

According to stock market experts, banking space is expected to pick up in rising interest rate regime as they will have more money for lending due to expected rise in savings of the retail investors. They said that stock has strong support at ₹12 and can go up to ₹25 once it sustains above ₹20 apiece levels.

Speaking on South Indian Bank share price outlook, Ravi Singhal, CEO at GCL Broking said, “Due to high interest rate regime entire banking space is expected to improve its NIMs and hence better quarterly numbers can be expected in upcoming quarters.”

Ravi Singhal of GCL Broking said that due to high interest rate regime, retail investors are expected to increase their savings for higher yield leading to more money into the hands of South Indian Bank and other banks for their lending and other business purposes.

On what chart pattern suggests in regard to South Indian Bank, Sumeet Bagadia, Executive Director at Choice Broking said, “South Indian Bank shares have strong support placed at ₹12 and it is facing resistance in ₹20-25 apiece zone. So, those who have this banking stock in their stock portfolio are advised to hold the stock with stop loss maintained at ₹12. The stock may go up to ₹25 apiece levels if it breaches its hurdle at ₹20 and sustains above ₹20 per share levels.”

South Indian Bank share price history

This multibagger penny stock has remained under base building mode after ushering in new year 2023. In YTD time, this multibagger stock has dipped to the tune of 15 per cent whereas in last one month it has shed near 7 per cent. However, the banking stock has managed to give multibagger return to its shareholders in last six months, despite sell off in YTD time. It has delivered 105 per cent return to its shareholders in last six months, doubling shareholders’ money in this time.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.