Daijiworld Media Network - Mumbai
Mumbai, Aug 11: Paytm shares continued their sharp recovery on Tuesday, touching a high of Rs 1,639.90 on the NSE, marking a 428 per cent or 5.3-fold rise from the stock’s record low of Rs 310 recorded in May 2024.
The stock has gained 71 per cent so far in financial year 2026-27, significantly outperforming key benchmark indices. During the same period, the Nifty 50, Nifty Midcap 100 and Nifty 500 have risen around 10 per cent, 21 per cent and 15 per cent, respectively.
At Tuesday’s levels, Paytm is trading close to a five-year high. The stock last traded above these levels in December 2021, shortly after its market debut in November that year.
Despite the strong recovery, Paytm has still not crossed its Initial Public Offering (IPO) issue price of Rs 2,150. After its listing, the stock touched a high of Rs 1,955, which was around 9 per cent below its IPO price. At current levels, the stock remains about 32 per cent below the IPO issue price.
Recently, Bernstein raised its target price for Paytm to Rs 2,200, taking into account the potential benefits from the introduction of a merchant discount rate (MDR) on Unified Payments Interface (UPI) transactions.
On the technical front, Laxmikant Shukla, Technical Analyst, Institutional Equities Research at YES Securities, said the recent rally was triggered by a decisive pole-and-flag breakout on the daily chart above Rs 1,407.
The weekly technical setup has also strengthened, with the stock holding above key moving averages and witnessing rising trading volumes, according to Shukla.
However, he cautioned that the sharp rally could be followed by near-term consolidation or a correction as the stock has entered the overbought zone. The Relative Strength Index (RSI) on the daily timeframe is around 84, indicating highly overbought conditions and raising the possibility of a brief consolidation or shallow pullback.
Shukla recommended a buy-on-dips strategy, identifying the Rs 1,480-Rs 1,500 range as a potential accumulation zone, supported by the recent breakout structure and visible demand.
If the broader uptrend remains intact, Paytm could move towards Rs 1,955 or even approach its Rs 2,150 IPO price over the next four to five months, Shukla said.
He, however, identified a close below Rs 1,407 as a key risk level that investors should monitor.