PAYTM SHARES: WHY RS 655 A CRUCIAL LEVEL TO WATCH; VAISHALI PAREKH ANSWERS
One 97 Communications Ltd (Paytm), whose shares have rallied 82 per cent in the past three months, has Rs 655 as an important level to watch, said Vaishali Parekh of domestic brokerage Prabhudas Lilladher. A breach of that level could pave way for higher levels towards Rs 850-900 levels, she said.
Paytm recently witnessed steep correction from the Rs 1,000 level but took support near the Rs 300-odd level and formed a Double Bottom formation on the daily chart, Parekh said. At present, Paytm shares are witnessing a pullback towards the 50 per cent retracement level of Rs 655.
"Moving past the significant 50-EMA level of Rs 532 and 200-DMA level of Rs 518 improved the bias and we expect a further rise on the counter. A decisive close above the level of Rs 655 is expected to send the stock towards Rs 850-900 levels in the coming days. The RSI is well-positioned and indicated a positive trend reversal to signal a buy," Parekh, who is
Vice President - Technical Research at PL Capital Group said.
With much upside potential visible from the current rate, she expects the stock to carry on with the upward move further ahead.
"We suggest to buy now and near the 200-DMA level of Rs 520 for an upside target of Rs 800, keeping the stop loss at Rs 500," she said. On Thursday, Paytm shares up were 0.99 per cent at Rs 620 on BSE. It hit a high of Rs 629.80 level intraday.
Morgan Stanley recently maintained its 'Equal-Weight' on the Paytm scrip and suggested a price target of Rs 500. Jefferies maintained a "Hold' call with a target price of Rs 420. Paytm also showed intension to reapply for a payment aggregator (PA) licence. If granted approval from RBI, Paytm will be able to onboard new online merchants, Jefferies reportedly said.
Ventura Securities has come out with a research note on One 97 Communications Ltd (Paytm) saying the stock can more than double to Rs 1,170 over the next 24 months, as per its base case assumptions. The domestic brokerage suggested a target price of Rs 1,444 per share in its bullish case scenario, which hints at a nearly three-fold jump in the stock price. Even with its bear case assumptions, Ventura finds the stock worthy of Rs 870 level.
2024-09-05T09:00:10Z dg43tfdfdgfd