Paytm share price surges on fourth straight day. Stock rises 24% in two weeks
Premium- Paytm share price has surged from ₹582 to ₹723 apiece levels in last two weeks
Paytm share price been rising continuously after dipping to its new low of ₹510.05 apiece levels in May 2022. Paytm shares opened higher for the fourth successive session in Tuesday's deals and went on to make its intraday high of ₹723.60 per share levels on NSE, recording around 2 per cent rise in intraday session.
The One97 Communications share price had closed at ₹582.25 on 13th June 2022 on NSE, with the fintech stock logging more than 24 per cent rise in last two weeks.
According to stock market experts, Paytm share price has given 'triangular pattern' breakout above ₹650 on closing basis and hence it is giving upside bounce for last two weeks. They went on to add that the fintech stock is on cusp of giving 'cup and holder' breakout at ₹720 on closing basis.
Analysts added that if the stock closes above ₹720 today then it may go up to ₹940 apiece levels in short to medium term. However, they maintained that it is just a technical bounce back and its fundamentals are still unchanged.
Speaking on Paytm share price rally, Ravi Singhal, Vice Chairman at GCL Securities said, "Paytm share price has been rising for last two weeks after giving triangular pattern breakout at ₹650 levels. The stock is on cusp of giving cup and holder breakout at ₹720 apiece levels. If Paytm shares today closes above ₹720 today, then we can expect this stock to first hit ₹800 and then ₹940 per share levels. However, one should buy the stock only when it is available in ₹680 to ₹700 range. Those who have this stock in their portfolio are advised to hold the counter maintaining stop loss at ₹650 apiece levels." Ravi Singhal of GCL Securities maintained that ₹940 target can be achieved only when the stock sustains above ₹800 levels.
Paytm IPO was launched in November 2021 at a price band of ₹2080 to ₹2150 per equity share. It was listed at discounted price and has been nosediving since listing on BSE and NSE on 18th November 2021. Paytm share price today is around ₹716, which is still near 67 per cent below its upper price band of ₹2150 per equity share.
On Paytm shares' fundamentals, Avinash Gorakshkar, Head of Research at Profitmart Securities said, "This is nothing but a technical bounce back. Fundamentals of the stock are still unchanged except some morale boosting news of share buyback by Paytm promoters. Paytm numbers in upcoming quarters are expected to remain on same line as we witnessed recently. So, this bounce back in Paytm shares has nothing to do with its fundamentals."
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Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.