Shares of One 97 Communications, Paytm’s parent, rebounded over 3 per cent in Friday’s trade after a sharp fall in the previous session. The stock climbed 3.14 per cent to hit a day high of Rs 559.25 over its previous close of Rs 542.25. The counter took a hit yesterday after Chinese multinational Alibaba sold around 2 crore shares in Paytm worth Rs 1,126 crore through bulk deals.
“Alibaba seems to be on the exit move from India as it has sold shares in its major investments like Paytm, BigBasket and Zomato. This is a positive for shareholders, as it clears many regulatory paths. In the case of Paytm, the company is on the fast track to profitability, and has been delivering good business updates,” said Avinash Gorakshakar, Head of Research, Profitmart Securities.
Paytm shares recovered some lost ground today, led by a strong rebound in technology stocks.
On the technical front, analysts largely felt the stock is ‘weak’. One analyst suggested that the Rs 565-600 zone remained a major hurdle for the stock, while another said it may hit Rs 450 in the near term. Support on the counter could be seen at Rs 511, one more analyst said.
Osho Krishan, Senior Analyst – Technical & Derivative Research at Angel One, said, “Paytm is in a secular downtrend and is placed below all its major moving averages. The stock has been in a cycle of lower lows – lower highs, and there has been no respite from the ongoing sell-off. Technically, all the major indicators are in the bearish tune, indicating inherent weakness in the counter. The Rs 500-510-odd zone is seen as the immediate support, breaching which it could retest the recent swing low of Rs 440. On the flip side, the bearish gap of the Rs 565-600 zone remains the major hurdle in the comparable period.”
Ravi Singh, Vice-President and Head of Research at Share India, said, “Immediate resistance is placed at Rs 570 to Rs 600 levels, which indicates weakness in the counter. Any minor bounce in the stock can be used for shorting opportunities for the week. The stock will remain under pressure in near term and may touch the levels of Rs 480 and Rs 450.”
AR Ramachandran from Tips2trades said, “Paytm looks bearish with strong resistance at Rs 579. Till a daily close above Rs 579 is not achieved, investors should not buy.”
Rs 511 would be strong support, Ramachandran added.
At today’s high level of Rs 559.25, the stock has gained 27.22 per cent from its 52-week low of Rs 439.60, hit on November 24 last year. That said, Paytm has declined 51.26 per cent from its one-year high of Rs 1,147.40, touched on January 17, 2022.
Further, the scrip has slumped 73.99 per cent from its initial public offering (IPO) price of Rs 2,150.
A total of 2.16 lakh shares changed hands today, which was lower than Paytm’s two-week average volume of 4.11 lakh. Turnover on the counter stood at Rs 11.83 crore, commanding a market capitalisation (m-cap) of Rs 35,979.62 crore.
Meanwhile, Indian equity benchmarks rose in late deals, led by gains in IT, banks and financials.
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