Nandan Denim, a penny stock trading below ₹10, surged 20% to hit its upper circuit of ₹2.72 on Friday, August 21, despite a weak trend on Dalal Street. The stock opened at ₹2.26 against its previous close of ₹2.27 and closed at the upper circuit level, marking gains for the second consecutive session, according to livemint.com.
The stock had risen 0.89% in the previous session and continued its upward momentum amid a broadly flat market benchmark Sensex, which extended losses for the second consecutive week. Nandan Denim’s sharp rise stands out as the broader market showed weakness, highlighting unusual buying interest in the penny stock segment on that day.
Penny stocks like Nandan Denim often attract speculative trading due to their low price and volatility. The 20% upper circuit hit is significant as it indicates a trading halt triggered by price limits designed to curb excessive volatility. Such movements can influence investor sentiment and trading volumes in the small-cap and micro-cap segments, even when major indices remain subdued.
Nandan Denim’s stock price closing at ₹2.72 on August 21 marks a notable event in the penny stock space, especially during a period when the Sensex was under pressure. This marks the second consecutive session of gains for the stock, underscoring its recent trading momentum.