PAYTM share price declined 4 percent in early trades as the company received ED notice on FEMA violations regarding its investments in a Singapore-based business. However, the stock recovered and closed 2 percent higher at Rs 729. PAYTM stock touched intraday low at Rs 683.55 and intraday high at Rs 734.80 before closing the session at Rs 729. The stock has fallen less compared to some other stocks during the recent selling in Indian equities. However, PAYTM has suffered a fall before Indian markets turned bearish and the stock declined from its recent highs at Rs 1062.

Regulatory Notice from Enforcement Directorate

On February 28, 2025, Paytm received a show cause notice from the Directorate of Enforcement (ED), Government of India, concerning alleged violations of the Foreign Exchange Management Act (FEMA), 1999, related to its acquisition of Little Internet Pvt. Ltd. (LIPL) and Nearbuy India Pvt. Ltd. (NIPL) between 2015 and 2019. The company clarified that some alleged violations pertain to periods before these firms became its subsidiaries. Paytm is actively seeking legal counsel and evaluating possible remedies to resolve the matter. It assured that its services remain unaffected and fully operational.

Strategic Partnership with RBL Bank

In a separate development, Paytm announced a partnership with RBL Bank to provide Soundbox and Card Machines to the bank’s merchant partners. This integration will allow merchants to track transactions in real-time through the Paytm for Business dashboard, enhancing transparency and operational efficiency. Paytm’s payment devices support multiple payment methods, including UPI, RuPay Credit Card on UPI, UPI Lite, debit/credit cards, and EMI options, offering merchants and customers increased flexibility.

Technical Analysis for Paytm (Daily Chart)

1. Candlestick Pattern Analysis
A review of Paytm’s daily candlestick chart reveals the following key observations:

Doji Candle Formation: Recent trading sessions indicate indecision in the market, signaling a possible trend reversal.
Bearish Engulfing Pattern: A strong bearish signal emerged, suggesting potential downside pressure if support levels are breached.
Hammer Candle at Lower Levels: This indicates buyer accumulation around Rs. 683.55, suggesting a possible support zone.
2. Fibonacci Retracement Levels for Paytm
Based on the 52-week high (Rs. 1,062.95) and 52-week low (Rs. 310.00), the Fibonacci retracement levels are:

23.6% Retracement → Rs. 487.70
38.2% Retracement → Rs. 597.63
50% Retracement → Rs. 686.48
61.8% Retracement → Rs. 775.32
100% Retracement → Rs. 1,062.95
Currently, Paytm is trading near the 50% Fibonacci level (Rs. 686.48), indicating that a breakout above this level could lead to a retest of Rs. 775.32.

3. Support and Resistance Levels
Immediate Support → Rs. 683.55 (recent low)
Major Support → Rs. 650.00 (psychological level)
Immediate Resistance → Rs. 734.80 (recent high)
Major Resistance → Rs. 775.32 (61.8% Fibonacci level)
If the stock holds above Rs. 686.48, an upside towards Rs. 734.80 and Rs. 775.32 could be expected. However, a break below Rs. 683.55 may lead to a downside move towards Rs. 650.00.

Actionable Insights for Traders

Bullish Scenario: If Paytm closes above Rs. 734.80, it could signal a short-term bullish trend, targeting Rs. 775.32.
Bearish Scenario: A break below Rs. 683.55 might trigger further downside pressure, with Rs. 650.00 as the next support zone.
Ideal Entry Point: Long positions can be considered above Rs. 734.80, while short positions may be initiated below Rs. 683.55 for a lower target.