NSEShares of One97 Communications Ltd., parent company of Payments aggregator Paytm, gained as much as 9% on Monday to ₹475.85, extending Friday's 6% surge.
The stock has risen 14% in the last two trading sessions.
With today's surge, shares of Paytm have risen to the highest in five months.Paytm shares faced sharp cuts earlier this year after the Reserve Bank of India's crackdown on its payments bank.
Given these technical signals, it is recommended to buy Paytm in the range of ₹465 - ₹475, with a target of ₹530, representing a potential upside.
This came after four straight months of losses.Shares of Paytm are currently trading 7.1% higher at ₹467.75.
NSE
Shares of One97 Communications Ltd., parent company of Payments aggregator Paytm, gained as much as 9% on Monday to ₹475.85, extending Friday's 6% surge. The stock has risen 14% in the last two trading sessions. With today's surge, shares of Paytm have risen to the highest in five months.Paytm shares faced sharp cuts earlier this year after the Reserve Bank of India's crackdown on its payments bank. The stock fell from levels of ₹760 to an all-time low of ₹310, before the recent recovery.Last week, Paytm announced the launch of "Paytm Health Saathi", an exclusive health and income protection plan is designed for Paytm's merchant partners and is available through the ‘Paytm for Business’ app. You can read more on the features here. Sacchitanand Uttekar of Tradebulls Securities said that this is likely the beginning of a fresh uptrend for Paytm, which is marked with an Inverse Head and Shoulder formation, which confirmed its base formation. He expects the momentum to take the stock to levels of ₹540. He advises placing a stop loss of ₹440 on the downside. As a disclosure, he has recommended the stock to his clients."Recently, Paytm has demonstrated a bullish divergence on the weekly chart, suggesting a potential reversal from a downtrend to an uptrend" said Jigar Patel of Anand Rathi."On the weekly chart, Paytm has also formed a double bottom pattern, a classic technical formation that typically signals the end of a downtrend and the start of an upward move. This pattern adds credibility to the potential for a trend reversal. Given these technical signals, it is recommended to buy Paytm in the range of ₹465 - ₹475, with a target of ₹530, representing a potential upside. To manage risk, a stop-loss should be set near ₹439 on a daily closing basis," he added.Paytm was one of India's largest IPOs before being overtaken by LIC in May 2022. However, the stock listed at a substantial discount to its IPO price of ₹2,150 and has not managed to see those levels since then.Even after this recent upmove, shares of Paytm are down 78% from its IPO price. The stock has risen 17% so far in July, following an 11% surge in June. This came after four straight months of losses.Shares of Paytm are currently trading 7.1% higher at ₹467.75. The stock is still down 28% so far in 2024.
