Paytm shares jump after Budget announcement on digital payment banks

Budget 2022: Immediately after Union Finance Minister Nirmala Sitharaman's announcement to continue its commitment towards fast adoption of digital payment system in India, Paytm share price started skyrocketing. The stock price of One97 Communications logged more than 5 per cent rise and hit intraday high of ₹971.40 per equity share.

According to stock market experts, this announcement means a lot for the bear-hit Paytm shares. After FM Nirmala Sitharaman's announcement that scheduled commercial banks to set up 75 digital banking units 75 districts and fuel digital payment adoption in India, Paytm shares may go up to ₹1400 per share levels.

Advising positional stock market investors to add Paytm shares in their stock portfolio; Anuj Gupta, Vice President at IIFL Securities said, "One can buy Paytm shares at current market price for short term target of ₹1050 per equity share maintaining stop loss at ₹900 levels." He advised investors to keep accumulating till it is trading above ₹925 per share levels.

On chart pattern in regard to Paytm shares; Sumeet Bagadia, Executive Director at Choice Broking said, "Paytm share price is expected to give breakout at ₹1100 per share levels in immediate short term on closing basis. After this breakout it may give sharp upside movements and hence those investors who want to play safe may wait for the breakout and buy above ₹1100 levels."

Advising investors to add Paytm shares in one's portfolio for long-term; Ravi Singhal, Vice Chairman at GCL Securities said, "Paytm stocks have been under severe beating since its listing and recent announcement by FM Nirmala Sitharaman is going to work as a catalyst that a quality stock like Paytm needs. In next one year, the stock may go up to ₹1400 levels." He advised investors to keep on accumulating if there is 4-5 per cent dip in the counter from current levels as the stock has escalated after a long time and people might think of short term profit booking at around 1000 to ₹1050 levels."

While presenting her fourth Union Budget in the parliament FM Nirmala Sitharaman announced that the Governmetn of India (GoI) is committed to promote and accelerate growth of digital payments adoption in India. She also announced that scheduled commercial banks will set up 75 digital banking units in 75 districts.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.