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

  • Stock market news: Paytm share price has risen from around 340 to 439 apiece level in one week

Asit Manohar
Updated13 Jun 2024, 12:14 PM IST
Paytm Money that kicked off its mutual fund business with a new application claims to have partnered with 30 asset management companies. Photo: Bloomberg
Paytm Money that kicked off its mutual fund business with a new application claims to have partnered with 30 asset management companies. Photo: Bloomberg

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."

On other factors that are fueling Paytm brand's parent One 97 Communications share price, Amit Goel, Co-Founder & Chief Global Strategist at Pace 360 said, “A significant driver of this surge is Paytm's partnership with Samsung. This deal will allow users to book flights, buses, movies, and events directly through the Samsung Wallet using Paytm's services. This expansion of Paytm's user base could potentially increase their transaction volume.”

“This partnership will help Paytm to enhance its user base while providing enhanced consumer convenience to its counterpart. In addition, the fintech company has also withdrawn its application to register as a general insurance company, redirecting its focus to the insurance distribution business. These reasons have imbibed confidence amongst investors in the company’s revenue visibility going forward,” said Shreyansh V Shah at Research Analyst, StoxBox.

Also Read: Why is gold price nosediving today after US Fed meeting?

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."

Also Read: Nifty 50 hits a fresh record high: Can it touch 24,000 before the Union Budget?

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.

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.MoreLess

News in Numbers

Numbers that help you understand news better
$5 M

394,000

$112 B

12.1%

₹133.50 Cr

₹12,300 Cr

$136 M

First Published:13 Jun 2024, 12:14 PM IST
HomeMarketsStock MarketsStock market news: Paytm share price jumps 30% in one week. More steam left?

Most Active Stocks

Indian Oil Corporation

166.90
03:41 PM | 12 JUL 2024
-7.6 (-4.36%)

Tata Steel

168.70
03:42 PM | 12 JUL 2024
-0.3 (-0.18%)

Bharat Electronics

333.30
03:42 PM | 12 JUL 2024
-2.25 (-0.67%)

Wipro

560.05
03:42 PM | 12 JUL 2024
25.7 (4.81%)
More Active Stocks

Market Snapshot

  • Top Gainers
  • Top Losers
  • 52 Week High

KPIT Technologies

1,862.00
03:28 PM | 12 JUL 2024
152.25 (8.9%)

Inox Wind

171.15
03:28 PM | 12 JUL 2024
13.1 (8.29%)

Oil India

596.00
03:28 PM | 12 JUL 2024
44.55 (8.08%)

Coforge

5,971.50
03:27 PM | 12 JUL 2024
408.1 (7.34%)
More from Top Gainers

Recommended For You

    More Recommendations

    Gold Prices

    • 24K
    • 22K
    Bangalore
    74,087.00382.00
    Chennai
    73,942.00-780.00
    Delhi
    74,014.00309.00
    Kolkata
    74,377.00-345.00

    Fuel Price

    • Petrol
    • Diesel
    Bangalore
    102.86/L0.00
    Chennai
    100.85/L0.10
    Kolkata
    104.95/L0.00
    New Delhi
    94.72/L0.00
    OPEN IN APP
    HomeMarketsPremiumInstant LoanMint Shorts