PAYTM share price surged 18 percent on Tuesday and the majority of those gains came during the last hour of trading. The buying was so strong that PAYTM turned into positive territory for 2024. PAYTM stock has opened negative in today's trade and we can possibly see lower levels after yesterday's major move. The stock closed yesterday with 15.65 percent gains at Rs 754.

On Wednesday, PAYTM opened at Rs 751 and touched an intraday low of Rs 727 (at the time of publication of this report). The stock is currently trading at Rs 732 (down by 2.3%).

PAYTM has been highly volatile and has touched 52-week high and low of Rs 998 and 310 respectively. We can expect positive moves in the coming days as the company has planned to improve its market share in payments business. The company has also shared it plans to concentrate on core business.

Paytm Money, a subsidiary of One 97 Communications, has introduced BSE futures and options (F&O) trading on its platform. With competitive pricing set at Rs 20 per trade order, the service aims to offer a cost-efficient solution for retail investors in India. Analysts remain bullish on the stock, forecasting significant upside potential in the coming months. Key technical levels and the stock's price action indicate promising growth, though crucial support zones must be maintained to ensure continued momentum.

Affordable Trading Fees for Retail Investors

Trading Charges: Paytm Money has launched BSE F&O trading with a flat charge of Rs 20 per trade order, plus applicable taxes.
Retail Investor Focus: The platform positions itself as one of the most economical options for retail investors, aiming to democratize access to derivatives trading in India.
This move underlines Paytm Money's strategy to capture a larger share of the burgeoning retail trading market, offering a low-cost entry point into futures and options trading.

Technical Analysis and Bullish Sentiment

Current Price Action: Paytm is currently trading at Rs 750, with bullish indicators suggesting potential upside. Analysts have set short-term targets between Rs 850 and Rs 900.
Support Levels: Strong support is observed at Rs 664, with additional support at Rs 650. A break below these levels could signal downside risk.
Resistance Levels: A daily close above Rs 756 could push the stock toward Rs 860 in the near term.
Several technical experts, including Raghvendra Singh and Ameya Ranadive, highlight Paytm's breakout above Rs 700 as a pivotal moment for future gains, with further upside potential if the stock maintains key support levels.

Market Expert Insights

Upside Potential: Raghvendra Singh predicts that Paytm could reach Rs 1,000 within three months, while near-term targets are set between Rs 850 and Rs 900.
Key Support Levels: Ameya Ranadive emphasizes the importance of maintaining support around Rs 650 to sustain the current bullish trajectory, suggesting a potential rally toward Rs 860 if the momentum holds.
Market sentiment remains positive, but maintaining these technical levels is crucial for further gains.

Strategic Sale of Entertainment Business

Divestment to Zomato: In August 2024, Paytm sold its entertainment ticketing business to Zomato for Rs 2,048 crore.
This sale represents a strategic shift for Paytm as it continues to streamline operations and focus on core financial services.

Regulatory Pressures on Paytm Payments Bank

RBI Restrictions: Paytm Payments Bank has faced regulatory scrutiny from the Reserve Bank of India (RBI) due to non-compliance issues and material supervisory concerns.
Despite these challenges, Paytm's core fintech business remains resilient, and the new BSE F&O trading service could bolster investor confidence in its growth prospects.