PAYTM share price declined 3.4 percent on Monday as selling pressure continued on the fin-tech counter. PAYTM opened the trading session at Rs 788 and the intraday high remained just above opening level at Rs 789. The stock drifted to intraday low at Rs 763 and ended the trading session at Rs 780. The stock has declined nearly 24 percent during the last one month. Investors should carefully watch the stock and make an entry only if downtrend changes to positive sentiment on this counter. While the stock currently trades at Rs 780, technical indicators and analyst opinions suggest it may be poised for further movement, making it a compelling subject for investors and traders alike.

Paytm's Performance Snapshot
Paytm’s focus on digital payments, financial services, and e-commerce has helped it become one of India’s most valuable tech companies, with a market capitalization of ₹49,720 crore. Despite the absence of a P/E ratio or dividend yield, Paytm's robust growth in user base and transaction volume makes it an intriguing growth stock.

Opening Price: ₹788.00
Day's High: ₹789.85
Day's Low: ₹763.20
Market Cap: ₹49,720 crore
P/E Ratio: Not applicable (loss-making)
Dividend Yield: Not applicable
52-Week High: ₹1,062.95
52-Week Low: ₹310.00

Recent Analyst Reports

Paytm's financial performance and future potential have been analyzed closely by leading research houses:

Goldman Sachs, in its January 10, 2025 report, upgraded Paytm with a target price of ₹950, citing strong growth in its payments and lending businesses. The report highlighted a 50% year-over-year increase in loan disbursals as a critical driver of future profitability.

Morgan Stanley, in its December 22, 2024 analysis, reiterated a buy rating with a target price of ₹980, emphasizing Paytm’s expanding user base and leadership in the digital payments ecosystem.

Both analysts agree that Paytm’s path to profitability remains a key determinant of its stock’s performance.

Technical Analysis of Paytm

Candlestick Patterns Analysis
On the daily chart, Paytm has recently formed a "Bullish Engulfing" pattern, indicating a potential reversal of the downtrend observed earlier in January. This pattern, where a green candlestick fully engulfs the body of the preceding red candlestick, is a strong bullish signal.

Key Takeaway: If Paytm sustains trading above ₹789, it could confirm a breakout and lead to further upside.
Fibonacci Levels
Fibonacci retracement, drawn from the 52-week high of ₹1,062.95 to the 52-week low of ₹310.00, reveals the following key levels:

38.2% Retracement: ₹680.28
50% Retracement: ₹686.47
61.8% Retracement: ₹796.66
With the stock currently trading near the 61.8% retracement level, breaking this resistance could indicate a strong upward trajectory toward ₹850.

Actionable Insight: Traders may consider entering a position if Paytm closes above ₹796, with a stop-loss near ₹750 and a target of ₹850.
Support and Resistance Levels
Paytm’s support and resistance levels indicate a well-defined trading range:

Support Levels: ₹763, ₹710
Resistance Levels: ₹796, ₹820
If Paytm fails to break the ₹796 resistance, it might retest the support level at ₹763, providing a potential re-entry point for long-term investors.