Paytm shares fell 30% in two weeks; more downside likely?

Shares of Paytm (listed as One97 Communications) have slipped 30% in the last two weeks. On the other hand, the stock, which hit a 52 week high of Rs 998.30 on October 20 , 2023 ended at Rs 605.85 on December 15, 2023, falling 39.31% in the last two months. Market cap of Paytm fell to Rs 38,460 crore on BSE on Friday. Total 4.81 lakh shares of the firm changed hands amounting to a turnover of Rs 29.12 crore. The stock fell to a 52-week low of Rs 472 on December 23, 2022.  

It ended 0.06% at Rs 605.85 on BSE.   

The stock has risen 14% in a year and gained 13.90 per cent in 2023.

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In terms of technicals, the relative strength index (RSI) of Paytm stands at 16.2, signaling it's trading in the oversold territory. The stock has a beta of 0.2, indicating low volatility in a year. Shares of Paytm are trading lower than the 5 day, 20 day, 50 day, 100 day and 200 day moving averages.    

Gaurav Bissa, Vice-President, InCred Equities said, "Paytm witnessed a strong correction with a big marubozu candle formed on the weekly charts. This is a sign of weakness increasing in the medium term. It has broken the previous week's low and currently forming another marubozu candle which can push the prices towards Rs 580 levels. It has fallen on back of strong volumes suggesting the bounces may get sold into. Investors are advised to avoid buying the stock at current levels as it is trading below the 61.8% fibonacci retracement levels. A weekly close above Rs 660 can result in some stability and RSI crossing 40 levels on weekly charts can halt the fall. That should be the trigger to buy the stock for medium term upside." 

Abhijeet from Tips2trades said, "Paytm looks bearish and  oversold on the Daily charts with next support now at 573. Investors should buy only if Daily close is above resistance of 633." 

Disclaimer: 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.  

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