Paytm up 428% from its low; Bernstein sees more headroom; tech view here

Paytm stock surged 71% thus far in FY27, and a whopping 429% from its all-time low of ₹310 in May 2024. Tech analyst at YES Securities reckons that the stock can possibly test the IPO price from here.

Paytm stock has witnessed a sharp rebound from its record low of ₹310 registered in May 2024. On Tuesday, the stock touched a high of ₹1,639.90 on the NSE - up 428 per cent or 5.3-fold from its nadir.  In the financial year FY26-27, the stock has rallied 71 per cent. In comparison, the Nifty 50, Nifty Midcap 100 and Nifty 500 indices gained around 10 per cent, 21 per cent and 15 per cent, respectively, in the same period.  At current levels, the stock trades at a near 5-year high. The stock last traded above these levels in December 2021, just a month after its debut in November 2021. Incidentally, the stock is yet to cross its Initial Public Offer (IPO) issue price of ₹2,150 per share till date.  Post listing, the stock hit a high of ₹1,955 - a discount of 9 per cent to the IPO price. As of date, the Paytm trades roughly at a 32 per cent discount to its IPO price of ₹2,150.  Recently, Bernstein raised its target price on Paytm above the IPO price to ₹2,200 taking into account likely benefit incorporating the merchant discount rate (MDR) introduction on Unified Payments Interface (UPI) transactions. READ MORE  Can the renewed optimism at the counter, help Paytm rally past its IPO price? Here's what technical analysts at YES Securities has to say. 

Technical outlook on Paytm stock

  Laxmikant Shukla, Technical Analyst, Institutional Equities Research at YES Securities highlights that the recent rally in Paytm stock was triggered after a decisive pole-and-flag breakout on the daily chart above ₹1,407.  The analyst reckons that the weekly setup further reinforces this strength with prices holding well above key moving averages and supported by rising volumes. 

 

 

  Shukla, however, cautions that the stock may witness some consolidation or correction in the near-term as it trades in the overbought zone.  "The Relative Strength Index (RSI) at ~ 84 on the daily timeframe indicates an overbought condition, suggesting the possibility of a brief consolidation or a shallow pullback before fresh momentum emerges," explains Shukla.  As a trading strategy, the analyst from YES Securities recommends in adopting a buy-on-dips strategy with ₹1,480–₹1,500 band as a potential accumulation zone, backed by the breakout structure and visible demand.  Going ahead, as the broader trend remains firmly intact, Paytm could move toward ₹1,955 or near its IPO price over the next four to five months, believes Shukla. The analyst, however, cautions that a close below the ₹1,407 should be a key risk to monitor.  Disclaimer: Views and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers' discretion is advised.