Paytm share price jumped 3 per cent to Rs 624 apiece on BSE on Wednesday after the company posted strong operating performance in April-May. Paytm’s lending business witnessed rapid growth with a 471 per cent on-year surge in loan disbursals in two months ended 31st May. The stock price has been reeling under pressure ever since it listed on the stock exchanges in November last year. Paytm stock price has lost 60 per cent from listing price and more than 70 per cent from IPO price of Rs 2,150 apiece.
Analysts say that despite strong loan disbursements reported by Paytm, investors should focus more on loan recoveries and profits to assess the risk capacities of companies into lending. “Technically, any uptrend up to 700-720 should be used by traders to exit their buy positions. Immediate support will be at 580,” Pavitraa Shetty, Co-founder & Trainer, Tips2Trades, told FinancialExpress.com.
Ravi Singh advised investors to avoid fresh long positions at present and said that those who are holding positions may wait for 700 levels to exit their holdings. “The stock has shown an up move amid strong lending numbers, however, the underlying trend is still sideways to bearish,” he added. Paytm reported strong growth as merchant payments volume rose 100 per cent on-year with the gross merchant value processed hitting Rs 1.96 lakh crore in the past two months.
The stock recommendations in this story are by the respective research analysts and brokerage firms. Financial Express Online does not bear any responsibility for their investment advice. Capital markets investments are subject to rules and regulations. Please consult your investment advisor before investing.
Leave a Reply