New Delhi: There was a sharp rise in Paytm shares on Tuesday. This stock rose about 16 percent. This share closed at Rs 753.60 on BSE, rising by Rs 102 or 15.65%. This is the biggest rise since February 2023. This rise has been seen in Paytm shares after three consecutive days of decline. However, the reason for this rise is not yet clear. But, it is believed that the stock is recovering after booking profits. Paytm shares have increased by 4.30 percent this week. With this surge, Paytm’s shares have reached a profit of 12 percent so far in 2024. Its shares had seen a huge decline since the RBI imposed some restrictions on Paytm Payments Bank in February. The stock had reached its all-time low of Rs 310. But, the rise on Tuesday put brakes on the decline that had been going on for three days.
Still 66% below its IPO price
If we look at the chart, the Relative Strength Index (RSI) of Paytm is currently at 61. This shows that the stock is moving towards the ‘overbought’ zone. Generally, an RSI of more than 70 indicates that the stock is ‘overbought’.
Recently, in an event, Paytm founder Vijay Shekhar Sharma had expressed regret over not choosing the right banker for the company’s IPO.
When Paytm shares were listed on the stock exchange for the first time in 2021, its price was Rs 2,150 per share. However, there has been an improvement in prices recently but it is still 66% below its IPO price. So should you buy or sell Paytm shares?
Buy or Sell… What are Analysts Saying?
Of the 18 analysts covering Paytm, 6 believe it to be a ‘Buy’, 6 recommend it to ‘Hold’ while the remaining 6 recommend it to ‘Sell’.
In January, RBI had imposed some restrictions on Paytm Payments Bank Limited (PPBL). Under this, he was banned from taking new deposits and credit transactions.
In a separate analysis in September, MK Global had predicted a rise in the company’s shares. The firm has raised its rating for the payments giant to ‘Add’ from ‘Reduce’. Target price has been increased from Rs 375 to Rs 750.
(Disclaimer: The recommendations given in this analysis are those of individual analysts or broking companies, and not of NBT. We advise investors to consult certified experts before taking any investment decision as stock market conditions change rapidly. Can.)