Paytm can slip below Rs 400 if Bears tighten grip; Delhivery may hit Rs 300

Paytm dived over 10 per cent in intraday deals on Thursday amid heavy volume of around 40 million shares. The stock now seems headed to test support at its all-time low of Rs 510.

Shares of One97 Communications, the parent company of Paytm, tumbled over 10 per cent in intraday deals on Thursday. The sharp fall comes on the back of block deal. At 09:22 am, around 38 million equtiy shares changed hands at the counter on the NSE this morning.

According to reports Japan-based SoftBank Group was expected to offload 29 million shares in the price band of Rs 555 - 601.45 via block deal today. READ MORE

Following today's sharp fall, the stock now seems to be headed towards its all-time low placed at Rs 510, which can act as an immediate support. However, if it does break this support, Bears could take charge and the stock could drop another 20 per cent in the coming trading sessions.

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Earlier, the shares of One97 Communications had managed a decent pull back in May 2022, after registering the all-time low at Rs 510. The current weakness could see the stock test this reversal point. If it breaks the Rs 510 support, then bears have an upper hand to engulf this stock in a bearish uncharted territory. The stock will then enter a long-term bearish phase and struggle to retrieve back thereafter. The negative trend could even take stock under the Rs 400 level from a medium- to long-term perspective.   CLICK HERE FOR THE CHART

Lock-in period

The mood at the counter is also likely to remain tepid, as as the IPO lock-in period expired on November 15. Following this, SoftBank Group, one of the biggest shareholders beside AliBaba Group, and its fintech affiliate Ant Group announced their plan to offload stake in the company.


 

As of 11:20 am, over 4 million shares were traded at the counter, thus recording its highest-ever volume on a single day for the stock so far. Technically, the stock trades under all the key moving average such as 50-day moving average (DMA), 100-DMA and 200-DMA. As and when any stock tussles to stay afloat over these crucial averages, the trend suggests weakness and degrading momentum. The immediate hurdle for the stock is now placed is at Rs 630.

Paytm debuted on bourses in November 2021, and was India's largest-ever IPO at that time. However, investors were unlucky as the stock listed at 9.3 per cent discount to the issue price. Since then, it has been south-bound and is trading much below its listing price.

Delhivery
 

Logistics player Delhivery was seen trading on a sluggish note so far on Thursday. The stock has been in limelight on witnessing heavy volume based sell-off in recent trading sessions, thus pulling down the stock to new all-time lows. 

 

Earlier in August this year, the stock nose-dived over 15 per cent in consecutive trading sessions on heavy volume. In the process, it dismantled the overall bullish sentiment. The stock hit a fresh all-time low of Rs 341.30, down 31 per cent from its listing price. 

Despite the technical oscillator, the Relative Strength Index (RSI) recovering from the oversold territory, the stock price action has failed to exhibit any positive sentiment. The stock faces resistance at the Rs 400 mark, followed by Rs 425 level. The trend remains weak beneath these hurdles and inability to conquer the same could lead to a fresh all-time low, around Rs 300-mark. CLICK HERE FOR THE CHART