Shares of One 97 Communications Ltd (Paytm's parent) rose sharply in Tuesday's trade. The stock surged 9.44 per cent to hit a day high of Rs 687.30. It was last seen trading 6.03 per cent up at Rs 665.50. At this price, the scrip has climbed 29.32 per cent in a month but fell 26.42 per cent in the past one year.
The digital payments firm recently sold its entertainment ticketing business to online food aggregator Zomato for Rs 2,048 crore. Paytm has been under tremendous pressure since Reserve Bank of India (RBI) announced restrictions on its Payments Bank's operations last year amid persistent non-compliance and continued material supervisory concerns.
Kranthi Bathini, Director of Equity Strategy at WealthMills Securities, said, "The stock is forming a bullish zone after touching a bottom of Rs 310. Paytm is aiming to turn into profitability in the next coming quarters. Those holding can continue with their positions. Investors with a high-risk appetite should only consider entering on dips. Those who entered at bottom levels can book some profit on the rise."
Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One, said, "Paytm has been in a cycle of higher highs and lower lows and has been maintaining the move for quite a long period. At the present juncture, the counter is hovering in the bearish gap with intermediate support around the 600 sub-zone. On the higher end, a series of resilience will be seen at Rs 700-720 levels, followed by the 750 zone in the comparable period."
Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers, said, "Support will be at Rs 630 and resistance at Rs 688. A decisive close above Rs 688 may trigger a further upside towards Rs 700. The expected trading range will be between Rs 600 and Rs 700 for the short term."
Ravi Singh, Senior Vice-President (Retail Research) at Religare Broking, said, "Paytm can touch 700 in the near term. One can buy near Rs 650 level, keeping a stop loss at Rs 625."
The scrip was trading higher than the 5-day, 10-, 20-, 30-, 50-, 100-, 150-day and 200-day simple moving averages (SMAs). The stock's 14-day relative strength index (RSI) came at 70.62. A level below 30 is defined as oversold while a value above 70 is considered overbought.
As per BSE, the stock has a negative price-to-equity (P/E) ratio of 20.29 against a price-to-book (P/B) value of 3.24. Earnings per share (EPS) stood at (-)30.95 with a return on equity (RoE) of (-)15.95.
Around 19.67 lakh shares were seen changing hands on BSE today. The figure was higher than the two-week average volume of 9.61 lakh shares. Turnover on the counter came at Rs 131.19 crore, commanding a market capitalisation (m-cap) of Rs 42,284.56 crore.