Shares of Paytm have remained a laggard on Dalal Street as the Fintech platform has tumbled about 69 per cent from its 52-week high at Rs 998.30 hit in October 2023.
Shares of Paytm were locked in the upper circuit of 5 per cent to Rs 349.95 on Friday, with a total market capitalization of Rs 22,250 crore.
Shares of One 97 Communication Ltd (Paytm) have scripted a strong rebound in the last two sessions. The stock was seen locked in the upper circuit of 5 per cent on both the trading sessions of Thursday and Friday.
The Vijay Shekhar Sharma-led fintech player denied reports that a key lending partner, Aditya Birla Finance, has invoked loan guarantees. First reported by the ET, there were several follow-up articles by other publications, including Moneycontrol, which Paytm said were factually incorrect.
“Therefore, the article’s claims about invoking loan guarantees due to repayment defaults by our partnered lenders are inaccurate. We continue to collaborate with multiple banks and NBFCs, ensuring a diversified lending partnership network while strictly adhering to risk and compliance. Our Personal Loans distribution business was not disrupted and continued to scale effectively,” Paytm said.
Shares of Paytm surged 12.9 per cent from its 52-week low at Rs 310 hit on Thursday. The stock was locked in the upper circuit of 5 per cent to Rs 349.95 on Friday, with a total market capitalization of Rs 22,250 crore. The scrip had settled at Rs 333.30 on Thursday, hitting 5 per cent buyer’s circuit for the day.
Shares of Paytm have remained a laggard on Dalal Street as the Fintech platform has tumbled about 69 per cent from its 52-week high at Rs 998.30 hit in October 2023. Moreover, the stock has wiped out more than 85 per cent of investors’ wealth from its IPO price of Rs 2,150.
Technical analysts, reading the charts believe that Paytm mostly is in the negative territory amid the ongoing corrective phase. However, the stock is in the oversold zone as it took near-term support and it may need to clear the near-term resistance to indicate more upside.
Avdhut Bagkar Derivatives & Technical Analyst at StoxBox said that Paytm displayed a sharp turnaround in the price action after hitting an all-time low. This is viewed in accord with the oversold position the stock has been undergoing since past few sessions, he said.
If the stock wants to enter the bullish arena, it must surpass Rs 360 mark on an aggressive chart structure. This includes robust volumes, and a gap-up scenario. If that happens, the price action could see subsequent up move to Rs 400 level. Failure to do so, the stock may dwindle to fresh all-time lows and trade with a negative bias in the short-term,” Bagkar added.
Paytm took support at Rs 310 level after witnessing a gradual slide and indicated a pullback with rising volume participation to improve the bias anticipating further rise, said Shiju Koothupalakkal, Technical Research Analyst at Prabhudas Lilladher, echoing the similar views.
“The RSI has indicated a trend reversal from the highly oversold zone and has signalled a buy, expecting to carry on the positive move further ahead for initial target of Rs 370-374 levels,” he said.
Paytm has been in the news for some time now and has shown a strong fall from higher zones, said Pravesh Gour, Senior Technical Analyst, Swastika Investmart.
“Paytm is trading in a sideways zone with support placed at Rs 305, its all-time low zone. On the upside, the first resistance will be around Rs 370, where the 20-day moving average (DMA) lies. Above 370, a major resistance will be at 400, with a psychological resistance and the 50 DMA placed,” he said.
Disclaimer: rojgarlive Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.
