Paytm share price chances of bullish rise in after Rs 634, see what is the latest news.
Paytm share price has shown significant movement, capturing the attention of investors and analysts alike. The stock of One97 Communications, which operates the Paytm platform, has surged by 9.44% today, reaching a high of ₹687.30 before settling at ₹665.50. This increase marks a notable recovery for the fintech giant, which has faced various challenges over the past year.
Main Points
In recent weeks, Paytm’s stock has displayed a bullish trend, climbing approximately 29.32% over the past month. However, despite this recovery, the stock remains down by 26.42% compared to the same period last year. The recent surge can be attributed to several factors, including strategic business decisions and market reactions to ongoing developments within the company.
Analysts have pointed out that the recent sale of Paytm’s entertainment ticketing business to Zomato for ₹2,048 crore has helped bolster investor confidence. This move is seen as a step towards streamlining operations and focusing on core business areas, which could lead to improved profitability in the future.
Market experts are optimistic about Paytm’s potential for further growth. Kranthi Bathini, Director of Equity Strategy at WealthMills Securities, noted that the stock is forming a bullish zone after previously touching a low of ₹310. He suggests that investors holding shares should maintain their positions, while those looking to enter the market should consider doing so on dips.
Osho Krishan, a Senior Research Analyst at Angel One, highlighted that Paytm has been in a cycle of higher highs and lower lows. He pointed out that the stock is currently hovering near a bearish gap, with support around the ₹600 mark. Resistance levels are expected at ₹700-720, indicating potential price targets for short-term traders.
Jigar S Patel from Anand Rathi Shares and Stock Brokers echoed similar sentiments, stating that a decisive close above ₹688 could trigger further upside momentum towards ₹700. He identified support levels at ₹630, suggesting that traders should watch these levels closely.
Today’s trading session saw around 19.67 lakh shares changing hands on the Bombay Stock Exchange (BSE), significantly higher than the two-week average volume of 9.61 lakh shares. This increased activity reflects heightened interest in Paytm’s stock, with a turnover of ₹131.19 crore and a market capitalization of ₹42,284.56 crore.
From a technical perspective, Paytm’s stock is trading above its 5-day, 10-day, 20-day, 30-day, 50-day, 100-day, 150-day, and 200-day simple moving averages (SMAs). The 14-day Relative Strength Index (RSI) stands at 70.62, indicating that the stock is nearing overbought territory. Investors should be cautious, as an RSI above 70 can signal a potential pullback.
Key Takeaways for Tomorrow
As traders prepare for tomorrow’s session, several key factors will influence Paytm’s share price:
- Support and Resistance Levels: Traders should keep an eye on the support level at ₹630 and resistance at ₹688. A close above ₹688 could lead to further gains, while a drop below ₹630 may signal a bearish trend.
- Market Sentiment: The overall market sentiment towards fintech stocks and regulatory developments will play a crucial role in determining investor behavior.
- Profit Booking: Given the recent surge, some investors may choose to book profits, which could lead to short-term volatility.
- Strategic Moves: Paytm’s management has indicated a commitment to achieving profitability, which could attract long-term investors looking for growth opportunities.
In summary, Paytm’s share price has shown a remarkable recovery today, driven by positive market sentiment and strategic business decisions. As traders look ahead to tomorrow’s trading session, monitoring support and resistance levels, market sentiment, and potential profit booking will be essential in navigating this volatile stock.
Disclaimer: The information given in this article is from investment experts and brokerage companies, they do not represent Local Haryana. Before taking any investment related decision, you must consult a certified expert.
