Paytm share price hits upper circuit after touching 52-week low. Buy or wait?
One 97 Communications share price may bottom out for short term once it breaches the immediate hurdle placed at ₹370 apiece level, say experts.
Stock market today: Shares of One 97 Communications Ltd, aka Paytm, witnessed a strong rebound after touching a 52-week low in early morning sessions on Thursday. Paytm share price today opened downside and touched a 52-week low of ₹310 apiece, but the One 97 share price witnessed a strong rebound and touched an intraday high of ₹333. While touching this intraday high, Paytm share price also hit 5 percent upper circuit. According to stock market experts, Paytm shares are rising after the newsbreak of Epay, which agreed to leverage its license to assist Paytm in onboarding new customers after the recent RBI restrictions. They said that Paytm shares have a strong base at ₹300 apiece levels, and it may touch ₹420 to ₹430 per share level once it breaches the immediate hurdle placed at 370 per share mark.
Why is Paytm’s share price rising today?
Discussing the factors that propelled Paytm’s share price from 52-week lows, Amit Goel, Co-Founder & Chief Global Strategist at Pace 360, underscored the strategic partnership with Epay as a significant catalyst. He noted, “Today, Paytm’s share price hit the upper circuit, signaling positive news after a period of challenges. The RBI’s restrictions had affected Paytm’s ability to onboard new customers and operate its digital wallet, impacting the company’s credibility. However, the situation took a turn for the better with Epay, a seasoned player in the Indian market for over a decade, stepping in. Epay’s agreement to leverage its license to assist Paytm in resolving this issue, lending its infrastructure to Paytm and enabling the company to continue providing its digital services, has injected optimism into the market.”
Paytm share price target
On the suggestions to investors regarding Paytm shares, Ganesh Dongre, Senior Manager — Technical Research at Anand Rathi, said, “Paytm share price has made a crucial base at ₹300 apiece level on the technical chart pattern. On the upper side, Paytm shares face a hurdle at the ₹370 per share level. On breaching above this level, one can assume that the stock has bottomed out for a short term. However, once the stock breaches the ₹440 hurdle on a closing basis, one can assume that the stock has finally bottomed out. Those with Paytm shares in their portfolio can hold the scrip, maintaining a stop loss at ₹300 per share for the immediate target of ₹370. Those with a medium-term view can hold the scrip further for 2-3 months target of ₹430 apiece.”
Providing advice to potential investors, Ganesh Dongre of Anand Rathi suggested, “Fresh investors can consider buying Paytm shares at the current market price for a short-term target of ₹370 per share, with a stop loss at ₹300 per share levels. However, the stock’s potential can be fully realized in the medium to long term once it surpasses the ₹370 hurdle. This breakthrough could propel the stock to reach ₹420 to ₹430 per level. In the long term, if the stock gives a channel breakout above ₹440 per share level on a closing basis, it could potentially reach ₹740 to ₹750 apiece levels, offering a promising investment opportunity.”
Disclaimer: The views and recommendations provided in this analysis are those of individual analysts or broking companies, and not Mint. We strongly advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and individual circumstances may vary.