Paytm shares to rally to Rs 1,800! Analyst decode strong momentum: Should you buy?

One 97 Communications Ltd (Paytm) has emerged as one of the standout momentum plays in the market’s recent rally, with Akshay Bhagwat, Senior VP of Derivatives Research at JM Financial Ltd, advising short-term investors to stay put as the stock could climb to Rs 1,800 in the near term. The call comes at a time when digital payments stocks are back in focus, coinciding with the 10th anniversary of UPI and renewed investor interest in India’s fintech leaders.

Momentum still in favour
Responding to a query from a Ludhiana-based investor holding Paytm shares at Rs 1,165 with a one-month horizon, Bhagwat said the stock has already delivered a powerful move and may not be done yet. “The stock has done wonders on the price front,” he said, adding that it has seen “one way upside in the last three months,” with the bulk of the gains coming in August.

That sharp move, according to him, still has room to extend. “The momentum is still strong,” Bhagwat said, projecting that “the last leg of momentum run can see the stock going to eighteen hundred.”

Trading strategy for short-term investors
For traders and short-term investors, the advice was clear: continue holding existing long positions, but with disciplined risk management. Bhagwat pegged immediate support at Rs 1,650 and recommended maintaining a stop loss at Rs 1,600.

On the upside, he suggested that investors should look at Rs 1,800 as the zone where profits can be booked. That effectively frames Paytm as a momentum trade rather than a fresh long-duration conviction call, especially for investors operating with a one-month view.

Why Paytm is back in focus
The timing of the bullish view is notable. Paytm’s market narrative has long been tied to India’s digital payments boom, and the UPI milestone has once again brought attention back to the sector’s early leaders. When UPI was launched, Paytm was widely seen as one of the biggest beneficiaries and among the most visible names in the digital payments ecosystem.

Even so, the company’s stock market journey has been far from smooth, marked by phases of steep volatility and shifting investor sentiment. That is what makes the current rally significant: the move appears to be driven less by legacy narrative and more by technical strength and renewed market appetite for high-beta fintech names.

Broader market backdrop
The Paytm call also comes amid a volatile market environment, with banking and financial stocks leading the session even as broader indices remained choppy. In such a tape, stocks showing decisive price momentum tend to attract outsized trader interest — and Paytm, for now, appears to be firmly in that camp.