Paytm shares cross Rs 1,000 mark, overbought on charts; here's why 

Shares of Paytm, listed by the name of parent firm One97 Communications, zoomed to their 52-week high on Monday after the company's wholly-owned subsidiary, One97 Communications Singapore Pvt Ltd (Paytm Singapore), announced the sale of its Stock Acquisition Rights (SARs) in PayPay Corporation, Japan, to SoftBank Vision Fund 2 for net proceeds of JPY 41.9 billion (approximately Rs 2,364 crore).

Paytm shares rose 3.19% to Rs 1007 on Monday against the previous close of Rs 975.80 on BSE. Market cap of Paytm climbed to Rs 62,923 crore on BSE. Total 1.99 lakh shares of the firm changed hands amounting to a turnover of Rs 19.86 crore. The stock fell to a 52-week low of Rs 310 on May 9, 2024. 

The stock has risen 52% in a year and gained 53 per cent in 2024. The stock has a beta of 0.8, indicating low volatility in a year.

In terms of technicals, the relative strength index (RSI) of Paytm stands at 72.7, signaling it's trading in the overbought territory. Shares of Paytm are trading higher than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day, 150 day and 200 day moving averages.

The transaction, expected to be completed by December 2024, is contingent upon corporate approvals, execution of transaction documents, and customary closing conditions.

Proceeds from this sale will be used to strengthen Paytm's consolidated cash reserves, supporting future initiatives aimed at creating shareholder value.

Paytm Singapore spokesperson said, "We are grateful to Masayoshi-san and the PayPay team for giving us the opportunity to together create a mobile payment revolution in Japan. We remain fully committed and will continue to support PayPay's product and technology innovations in future. We are working on introducing new AI-powered features to accelerate PayPay’s vision in Japan."