Paytm shares price rose nearly 2 percent or Rs 10 on NSE to Rs 553.50. This was after Morgan Stanley Asia purchased 54,95,000 and 39,80,000 shares in bulk deals of Rs 534.80 each share.
Morgan Stanley announced Thursday that Paytm would be one of the key beneficiaries of India’s Unified Payments Interface incentive scheme. The Union Cabinet approved Wednesday the Rs 26 billion incentive scheme for RuPay Debit Cards, low-value BHIM -UPI transactions (P2M), for FY23. This is in comparison to Rs 15 billion in FY22.
Kunal Saraogi, a market expert, stated that technically chart doesn’t show any improvement. He stated that although there has been a pullback at lower levels, the structure is still extremely weak. He stated that all levels of this stock will see selling pressure. Saraogi warned that it is unlikely that this stock will experience a runaway rally. investors.
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In a previous interview, Nilesh Jain, technical analyst at Paytm stated that only traders can purchase Paytm shares. He said that the chart structure was positive and that the counter could move up to 14 percent from the current market price at Rs 571.
Jain, Assistant Vice President – Lead Derivative and Technical Research at Centrum Broking, had recommended Paytm with targets of Rs 600 and R 650 and a stop loss limit of Rs 540. It is possible to either buy it at the current level or when it falls.
Analyst Simi Bhaumik also recommended Paytm shares earlier for targets of Rs 590/600.
The Paytm share price fell by almost 70% from Rs 2,150 issue price. The 1-year returns of Paytm are now negative 47% compared to the (-) 2.1% returned by Nifty50. This period, the underperformance was more than 47 percent
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According to Trendlyne data, Momentum indicator MFI is still at 50.4. Relative Strength Index, or RSI is another momentum indicator at 50.8. If the number is below 20, it means that the stock has been oversold. A number above 70 indicates that the stock has been overbought.
Over a 1-year period, volatility in this stock was low at 0.92 and lower than 1.
Recently, the fintech company informed stock exchanges about Q3 performance updates ahead of the October-December quarter results. Surinder Chawla, the new CEO and Managing Director of Paytm Payments Bank, has also been announced.
According to the exchange filing, the company has disbursed 3.7 millions loans in value of Rs 3665 crore (USD 443 Million, an increase of 330 Percent) in December 2022. The month saw an increase of 117 percent in the number of loans issued.