Paytm shares down 27% from 52-week high level; here's what tech charts hint at

Shares of One 97 Communications Ltd (Paytm's parent) continued to fall for the second consecutive session. On Monday, the stock fell 3.41 per cent to close at Rs 780.20. At this price, it has tumbled 26.60 per cent from its one-year high of Rs 1,063, seen on December 17 last year.

The fintech firm recently clarified over a report titled, "Paytm and others face probe over crypto scam, ED freezes Rs 500 crore". Paytm, in response, said, "We confirm that we have not received any such new notice, communication, or query from the Enforcement Directorate regarding the matter mentioned in the media articles. The information published is factually incorrect and misleading and we had not received any query from the media prior to the publishing of this news article."

"The instances currently being reported by the media pertain to similar old enquiries regarding third-party merchants. We would like to clarify that these merchants are independent entities and are not part of our group. We confirm that we had fully cooperated with the authorities and had complied with all their directives," it also said.

"We would also like to take this opportunity to clarify that contrary to media reports there has been no probe on the company or its subsidiaries, the ED's probe is on third-party merchants," Paytm further stated.

A few technical analysts suggested that the counter looked 'bearish' in the near term. Support could be seen in the Rs 770-760 range.

Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One, said, "Paytm has experienced a correction of 23 per cent this month. The near-term outlook appears negative. In terms of resistance levels, there is a series of barriers between Rs 820 and Rs 850, with the Rs 890-900 range acting as a strong hurdle for any upward movement. Conversely, if the stock falls below Rs 770, it could trigger a new wave of selling, potentially pushing the price down toward the Rs 720-700 zone in the near term."

Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi, said, "Support will be Rs 760 and resistance at Rs 790. A decisive move above Rs 790 level may trigger a further upside of Rs 825. The expected trading range will be between Rs 780 and Rs 825 for the short-term."

Sebi-registered research analyst AR Ramachandran said, "Paytm is bearish on daily charts with strong resistance at Rs 807. A daily close below support of Rs 763 could lead to a downward target of Rs 706 in the near term."

On the earnings front, the digital payments firm reported a narrower loss, at Rs 208 crore, in the December 2024 quarter compared to Rs 222 crore in the corresponding quarter last fiscal. Revenue for the quarter fell 36 per cent year-on-year (YoY) to Rs 1,828 crore from Rs 2,850 crore in the year-ago period.