The recent week has seen an increase in the price of Paytm’s shares. Over this time frame, the Paytm share price has surged from approximately ₹340 to ₹439 per share, or a 30% increase. The price of a Paytm share began the day on the NSE with an upside gap at ₹407 per share, and it rose by roughly 9 percent during the day to reach an intraday high of ₹739 per share. The IRDAI’s acceptance of Paytm’s application to withdraw its associate company for general insurance is what caused the company’s share price to spike recently. Paytm was previously selling its own insurance coverage, which was a losing endeavor. This change enables Paytm to function as an insurance agency. Stock market analysts forecast that after Paytm crosses the ₹450 barrier on a closing basis, it might approach the ₹550 and ₹610 targets.
Paytm share price triggers
“The IRDAI’s acceptance of Paytm’s application to withdraw its associate company for general insurance is a game-changer,” said Saurabh Jain, vice president of research at SMC Global Securities, in reference to the event that precipitated the Paytm share price increase. It is anticipated that this action, which turns Paytm into an insurance agency, will strengthen its financial situation. Investor confidence in Paytm shares is a result of this.”
Target price for Paytm shares
The technical aspects of Paytm shares were discussed by Ganesh Dongre, Senior Manager — Technical Research at Anand Rathi, who said, “The Paytm share price is currently confronting a roadblock at ₹450. However, the stock may reach ₹550 and ₹610 if this resistance is convincingly broken. It is imperative to keep an eye on the Paytm stock closing on Thursday. A closing over ₹420 might point to a trend in the right direction and raise the chance of breaking beyond the ₹450 barrier. Consequently, it is recommended that Paytm shareholders hold onto their stock while keeping a stop loss around ₹390 per share.”
For new investors thinking about Paytm shares, Anand Rathi’s Ganesh Dongre has some very obvious advise. He advises holding off on a closure basis till there is a breakout at ₹450. After that, he suggests purchasing the stock with a strict stop loss at ₹420 and aiming for ₹550 and ₹610. In addition, he suggests that following the breakout over ₹450, Paytm owners raise their trailing stop loss from ₹390 to ₹420. For novice investors, this counsel offers a clear course of action.
(Disclaimer: The opinions and suggestions mentioned are from individual analysts, experts, and broking firms, not endorsed by Businessuncover. Investors should consult certified experts before deciding on investments.)