Stock market news: Paytm share price jumps 30% in one week. More steam left?

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Stock market news: Paytm share price has been on an uptrend for the last week. In this period, Paytm share price has skyrocketed from around 340 to 439 per share mark, recording around a 30 per cent rise in this time horizon. Paytm share price today opened with an upside gap at 407 apiece on NSE and touched an intraday high of 739 per share, logging an intraday rise of nearly 9 percent. The recent surge in Paytm’s share price can be attributed to the IRDAI’s decision to accept the company’s application to withdraw its associate company for general insurance. This move allows Paytm to operate as an insurance agent, a shift from its previous strategy of selling its own insurance policies, which was a loss-making venture. Stock market experts predict that Paytm share price may touch 550 and 610 targets once it breaches the 450 hurdle on a closing basis.

Triggers for Paytm share price

Regarding the catalyst that sparked the Paytm share price surge, Saurabh Jain, Vice President — Research at SMC Global Securities, commented, “The IRDAI’s acceptance of Paytm’s application to withdraw its associate company for general insurance is a game-changer. This move, which transforms Paytm into an insurance agent, is expected to bolster its financial position. This is why investors are showing confidence in Paytm shares.”

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Paytm share price target

Ganesh Dongre, Senior Manager — Technical Research at Anand Rathi, shared his insights on the technical aspect of Paytm shares, stating, “Paytm share price is currently facing a hurdle at 450. However, if this resistance is decisively breached, the stock could potentially reach 550 and 610. It’s crucial to monitor Paytm shares’ closing on Thursday. A close above 420 could indicate a positive trend, increasing the likelihood of breaching the 450 hurdle. Therefore, Paytm shareholders are advised to hold the stock, maintaining a stop loss of 390 per share level.”

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For fresh investors considering Paytm shares, Ganesh Dongre of Anand Rathi offers clear advice. He suggests waiting for a breakout at 450 on a closing basis. Once this occurs, he advises buying the stock for 550 and 610 targets, while maintaining a strict stop loss at 420. He also recommends that Paytm shareholders upgrade their trailing stop loss from 390 to 420 after the breakout above 450. This guidance provides a clear strategy for new investors.

Disclaimer: The views and recommendations above are those of individual analysts, experts, and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.

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Published: 13 Jun 2024, 11:44 AM IST

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