Paytm stock price hits upper circuit, is it a good time to buy? - Hindustan Times
close_game
close_game

Paytm stock price hits upper circuit, is it a good time to buy? What market experts say

Feb 19, 2024 01:52 PM IST

Paytm stock price may be rising but some brokerage firms have downgraded the stock after RBI's action.

Paytm Share Price: Paytm shares gained 5 per cent as the stock hit the upper circuit for the second straight session. This comes as the company partnered with Axis Bank for the settlement of merchant payments- shifting its nodal account through an escrow account. This also comes as the Reserve Bank of India (RBI) extended the deadline to halt operations for Paytm Payments Bank account holders till March 15.

Paytm Stock Price: A QR code for the Paytm digital payment system at a roadside coconut stall in Mumbai, India.(Bloomberg)
Paytm Stock Price: A QR code for the Paytm digital payment system at a roadside coconut stall in Mumbai, India.(Bloomberg)

Read more: Paytm share price hits upper circuit again today. What's driving the rally?

What brokerage firms have said on the stock?

Some brokerage firms have downgraded the Paytm stock after RBI action. Global brokerage firm Macquarie in its recent report downgraded the stock's rating to ‘underperform’ significantly lowering its target price to 275 per share from an earlier target price of 650.

Unlock exclusive access to the story of India's general elections, only on the HT App. Download Now!

Read more: No FEMA violation found by ED in Paytm Payments Bank case: Report

What analysts have said on the Paytm stock?

Jigar S. Patel, senior manager of Equity Research at Anand Rathi Share and Stock Brokers told Mint, “Should there be any potential upward movement from lower levels, it may serve as an opportunity to exit positions. The daily Stochastics indicator has entered the oversold zone, suggesting a continuation of bearish momentum. Consequently, traders are advised to stay away from this counter.”

Read more: How to deactivate Paytm FASTag and buy new one online: Step by step guide

Although, Milan Vaishnav, CMT, MSTA, Founder and Technical Analyst of Gemstone Equity Research and ChartWizard FZE said that investors should strictly avoid the stock as “given the kind of turmoil the company is in, it would be prudent not to add any more quantity even if it is available at a deep discount. While staying put with the investments and taking a steep cut would make no sense for the investors, any fresh or incremental exposure in the stock should be strictly avoided.”

Discover the complete story of India's general elections on our exclusive Elections Product! Access all the content absolutely free on the HT App. Download now!
Stay informed on Business News, TCS Q4 Results Live along with Gold Rates Today, India News and other related updates on Hindustan Times Website and APPs
SHARE THIS ARTICLE ON
Share this article
  • ABOUT THE AUTHOR
    author-default-90x90

    Follow the latest breaking news and developments from India and around the world with Hindustan Times' newsdesk. From politics and policies to the economy and the environment, from local issues to national events and global affairs, we've got you covered.

SHARE
Story Saved
Live Score
OPEN APP
Saved Articles
Following
My Reads
Sign out
New Delhi 0C
Friday, April 12, 2024
Start 14 Days Free Trial Subscribe Now
Follow Us On