Shares of One 97 Communications Ltd, the parent company of Paytm, dropped more than 4 per cent to Rs 388 on Wednesday. The stock was again hit hard after Paytm Payments Bank's Managing Director and CEO Surinder Chawla resigned from his position. Chawla’s resignation comes amidst Paytm Payments Bank facing prohibitory action from RBI. Also, The National Payments Corporation of India (NPCI) data suggested Paytm's market share had fallen to 9 cent in March from 11 per cent in February, the recent data available on the website stated. The fintech major processed around 1.2 billion UPI transactions in March, down from 1.3 billion transactions in February, and 1.4 billion in January. However, the data suggesting that mutual fund, FPI and retail buying in Paytm in the March 2024 quarter could not lift sentiment on the counter. Foreign portfolio investors increased their shareholding in the Paytm operator by 2 percentage points to 20.64 per cent, while mutual funds also raised their stake 116 basis points to 6.15 per cent in the March 2024 quarter. Kranthi Bathini, Director of Equity Strategy at WealthMills Securities said that Paytm is only for investors with high appetite and one with lower-risk should avoid it. The stock has been reeling under severe pressure on the back of newsflow, impacting the prospects of the company. "One needs to look at the financial performance of the company for the March 2024 quarter and first quarter of the new fiscal, before taking a call on the stock. The financial performance and switch to nodal banking will be key factors that will drive the direction of the stock in coming months," he added. Paytm may report a net loss of Rs 469.30 crore for the March 2024 quarter as its operating profitability is likely to take a hit due to the RBI’s ban on Paytm Payments Bank (PPBL), said Motilal Oswal. The domestic brokerage expects a decline in Paytm's disbursements and gross merchandise value and a fall in growth in total revenue, it said. Motilal Oswal sees revenue from operations at Rs 1,830 crore, down 21 per cent YoY. Contribution margin is seen at 59.6 per cent. Ebitda margin is seen at minus 23.6 per cent while adjusted Ebitda margin at minus 2.5 per cent. "It also estimates a 23 per cent YoY decline in GMV in 4QFY24. The value of disbursed loans is expected to plunge 67 per cent sequentially," Motilal added. Meanwhile, Paytm as a stock appears to be weak on the charts. Analysts reading the technicals suggest investors avoid the stock at current levels as the stock may drop further to its key support levels. They suggest that investors should wait for the stock to cross the key resistance levels of around Rs 450 on a decisive basis to take any positions. On the daily charts, Paytm is still under selling pressure. The upcoming support for this stock is around Rs 320–330 and the resistance will be at Rs 450, said Ganesh Dongre, Senior Manager - Technical Research, Anand Rathi Shares and Stock Brokers. "Investors need to avoid this stock at its current level. We will keep waiting and watching for this stock for the upcoming sessions," he said. Paytm has been in consolidation for quite some time having Rs 440 level as the tough resistance zone and would need a decisive breach above that level to establish a confirmation for further upward move, said Shiju Koothupalakkal, Technical Research Analyst at Prabhudas Lilladher. "As of now, technically, the chart doesn’t look appealing and a decisive breach below the important and crucial support zone of Rs 350 shall further weaken the trend to anticipate further slide. The overall bias would improve only after a decisive move past the significant 50 EMA level of Rs 453 is confirmed," he said.