Paytm shares surge over 100% in a year; can stock break above Rs 1,000 mark?

Shares of One 97 Communications Ltd, Paytm's parent, have gained around 68 per cent on a year-to-date (YTD) basis. The stock was last seen trading 3.12 per cent lower at Rs 894.60 on Friday. At this price, the scrip has slipped 10.39 per cent from its one-year high price of Rs 998.30, a level seen on October 20, 2023. Despite the mentioned drop, the counter has turned into a multibagger by rallying 103.50 per cent from its 52-week low price of Rs 439.60, hit on November 24 last year.

Technical analysts largely suggested that the stock is currently witnessing a rangebound movement. Immediate support on the counter could be seen around Rs 860-870 levels. On the higher side, resistance may be found near Rs 930. A decisive breach above the said resistance zone is required for next upside targets of Rs Rs 990-1,000.

Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One, said, "Paytm has seen decent traction in the current financial year and is comfortably hovering near its 21-DEMA on daily timeframe. Rs 860 level is likely to cushion any blip, while sacrosanct support lies around the bullish gap zone Rs 830. On the higher end, Rs 935-940 is expected to be seen as an immediate hurdle, and a decisive surpass could only trigger fresh momentum in the counter.

Shiju Koothupalakkal - Technical Research Analyst at Prabhudas Lilladher, said, "The stock has been in consolidation for quite some time hovering between the range of Rs 928 and Rs 870 levels, witnessing a rangebound movement with support maintained near the significant 100-period MA of Rs 870. A decisive breach above Rs 928 level shall indicate a breakout for next initial targets of Rs 990-1000. At the same time, a decisive breach below Rs 870 shall weaken the bias and can anticipate for further slide with next major support visible near Rs 830."

Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers, said, "Paytm was constantly making higher-highs higher-lows, which is a sign of a well-established bull trend. In the last 2 sessions, it has reversed back after making a bearish candlestick along with bullish trendline violations on a daily scale. The reversal looked genuine since they were accompanied by massive selling volume. One can book profit in the zone of Rs 895–900 and wait for a meaningful correction for adding longs."

AR Ramachandran from Tips2trades said, "Paytm is rangebound on daily charts in the range of Rs 875-950. A break on either side will clearly determine the next trend."

On BSE, around 10.20 lakh shares changed hands today. The figure was way more than the two-week average volume of 1.07 lakh shares. Turnover on the counter stood at Rs 90.57 crore, commanding a market capitalisation (m-cap) of Rs 56,516.50 crore. There were 1,36,904 buy orders today against sell orders of 30,366 shares.

(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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