Paytm outlook: How much can the stock fall? Chart says this

Technical chart shows that bias for Paytm stock is likely to remain cautiously optimistic as long as the stock manages to close above ₹883. Here are the key levels to track.

Paytm stock witnessed its biggest intra-day fall in 16 months, as the stock tanked 10 per cent following reports of government rebuttal on talks of UPI charges. 

    The Finance Ministry on Wednesday in a social media post called reports on a likely fee on UPI transactions as "completely false, baseless, and misleading".  "Speculation and claims that the MDR will be charged on UPI transactions are completely false, baseless, and misleading," the ministry stated in a post on social media platform X. MDR stands for Merchant Discount Rates.  Meanwhile, on the NSE the Paytm stock hit an intra-day low of ₹864, and saw trades of around 16.60 million shares so far on Thursday. READ MORE  Will this news flow, trigger a further fall at the Paytm counter or can the stock withstand the likely selling pressure? Here's what the technical chart indicates for the stock. 

Paytm

Current Price: ₹903  Upside Potential: 9.9%  Downside Risk: 11%  Support: ₹883; ₹867  Resistance: ₹992  Amid Thursday's fall, Paytm stock briefly dipped below its trend line support, which stands at ₹883, and found support around its 50-Day Moving Average, which stands at ₹867. This suggests that the near-term bias at the counter is likely to remain cautiously optimistic as long as the stock holds above these 2 near-term support levels. CLICK HERE FOR THE CHART  The short-term bias shall turn negative, as and when the stock registers a close below ₹883. Following which, a dip towards its long-term moving average - the 200-DMA, which stands at ₹804 levels, cannot be ruled out.  ALSO READ | This tech indicator turns positive for these 3 IT stocks; details here  For now, the mood at the counter is likely to remain cautious as the key momentum oscillators on the daily scale have turned negative, and the stock has been facing resistance around its weekly trend line for the last two weeks. The key weekly trend line resistance stands at ₹992. Thus, technical chart suggests a likely trading range of ₹867 - ₹992 for Paytm stock as of now. A breakout in either direction can unveil a fresh bias.