Paytm shares became very profitable! 104% increase in stock from record lows; is the worst over?
Price of a Paytm share: The stock shot up 13.86 percent to close at Rs 631.30, the day’s high. The stock has now become a multibagger after rising 103.64% from its all-time low of Rs 310, which was reached on May 9 of this year.
The parent company of Paytm, One 97 Communications Ltd., saw a sharp increase in its shares during Friday’s late trading session. The stock shot up 13.86 percent to close at Rs 631.30, the day’s high. The stock has now become a multibagger after rising 103.64% from its all-time low of Rs 310, which was reached on May 9 of this year.
For Rs 2,048 crore, the digital payments company recently sold its entertainment ticketing division to online food aggregator Zomato. Since the Reserve Bank of India (RBI) put limits on Paytm Payments Bank’s operations last year due to ongoing substantial supervisory concerns and continuous non-compliance, the fintech company has been under a great deal of pressure.
“Risks and regulatory issues will not change. Medium- to long-term bets are currently only available to riskier investors, according to Prashanth Tapse, Senior VP (Research) at Mehta Equities, who spoke with Business Today TV.
One97 Communications Ltd
“I believe the worst is over. Because of the RBI’s intervention and examination of the IPO funds, there can be some volatility. Thus, I’m not a buyer at this time, but any decline will be a fantastic opportunity to buy,” Tapse added.
Analysts generally recommended booking gains at current levels based on technical setup. That being said, further upside is contingent upon a firm closure above the Rs 650 mark.
“Paytm has been on an upward trajectory lately, especially after hitting a low in May, and this trend has continued up to this point. Right now, a price range of Rs 530–520 should moderate the tendency. There is no particular barrier on the higher end as the counter enters a big negative gap.
According to Religare Broking’s Senior Vice-President (Retail Research), Ravi Singh, investors had to think about booking profits around or around Rs 630. Singh continued, “Support will be at Rs 610.”
“Rs 650 will be the resistance and Rs 600 will be the support.” A strong close over Rs 650 could start a new upswing towards 685. For the near future, the anticipated trading range is between Rs 600 and Rs 700, according to Jigar S. Patel, Senior Manager-Technical Research Analyst at Anand Rathi Shares & Stock Brokers.
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The 5-day, 10-, 20-, 30-, 50-, 100-, 150-, and 200-day simple moving averages (SMAs) were all below the scrip’s trading level. The relative strength index (RSI) for the stock after 14 days was 72.55.
Disclaimer – For informational purposes only and should not be considered as investment advice.
Shubhangi Gupta is a distinguished content writer and the visionary founder of The Unpleasant – Acha Nahi Sabse Sacha. With a Master’s degree in Commerce from University of Lucknow, Shubhangi has seamlessly blended her academic background with her passion for reading and writing, embarking on a successful career as a content writer since 2019.
