The shares of One97 Communications, a parent company of digital payments firm Paytm, plunged as much as 13.22 per cent as a lock-in period for its anchor investors ended on Wednesday.
Paytm stock was down 9.25 per cent to trade at Rs 1,357.15 at 9:57 AM, according to a report published in NDTV. Interestingly, the stock was trading close to its record low of Rs 1,271.25 touched November 22, 2021, as per the Business Standard report.
Parth Nyati, the founder of Tradingo, was quoted by Business Today, as saying, “following a sharp decline after the lock-in period ended for anchor investors, Paytm is finding buying interest at lower levels. However, 1,700 may act as a supply point and it may remain in the 1,300-1,700 range until the market determines its right value.”
If it manages to sustain above 1,700 level it may see further buying interest while it might find strong support between 1,200-1,300 range, he added.
Since the listing on November 22, the Paytm share crashed 27 per cent and has logged losses for 13 of the 18 sessions.
Several analysts have highlighted the company’s expensive valuations as the reason behind the plunge in its stock price.
Interestingly, some days ago, the digital payments and financial services firm on Monday reported over a two-fold rise in its gross merchandise value to about Rs 1,66,600 crore in the first two months of the third quarter of this fiscal, driven by a sharp uptick in loan disbursals.
However, even after reporting a two-fold rise in GMV, the shares of Paytm fell about 0.50 per cent on Monday. At 9:15 AM, Paytm’s share was trading at Rs 1,576.60 and it fell to rs 1,551 at 9:25 AM on Monday.
Moreover, Paytm had reported a net loss of Rs 473 crore in the September quarter compared to a loss of Rs 437 crore in the corresponding period last year. The company’s revenue from operations, however, increased by 63.6 per cent on a year-on-year basis and 22 per cent higher on a sequential basis.
In the meantime, check what analysts are saying, according to a report published in Financial Express.
Parth Nyati, Founder, Tradingo
Following a sharp decline after the lock-in period ended for anchor investors, Paytm is finding buying interest at lower levels however 1700 may act as a supply point and it may remain in the 1300-1700 range until the market determines its right value.
If it manages to sustain above 1700 level, it may see further buying interest, and it might find strong support between 1200-1300 range
Ravi Singhal, Vice Chairman, GCL Securities Ltd
Paytm share price is taking cues from the negative sentiments of the benchmark indices and is expected to touch the levels of Rs 1100 in the next trading sessions. Existing investors may hold their positions with a stop loss of Rs 1150. Fresh buy should be avoided at the current juncture.
Vishal Wagh, Research Head, Bonanza Portfolio Ltd
On the higher side Paytm is facing resistance near the 1750-1800 zone. Whereas, on the lower side, the demand zone is seen at 1270-1300 levels.
Till the stock is sustained near the demand zone, there are chances to bounce back till 1480-1570 levels. Any penetration on the lower side may face further supply. At this moment, we would like to wait and watch for the price behavior for the next couple of days for any comment.
