PAYTM - Swing Trade Analysis with AI Signals

Last Updated Time : 19 Sept 25, 2:15 pm

Swing Trade Rating: 4.0

📈 Swing Trade Analysis: PAYTM (One97 Communications Ltd.)

PAYTM presents a compelling short-term swing trade opportunity, driven by strong technical momentum and a sharp turnaround in profitability. While long-term fundamentals remain mixed, the current setup favors traders looking to capitalize on momentum and volume.

✅ Strengths

Technical Momentum

MACD (24.2): Strong bullish crossover — confirms upward momentum.

RSI (56.2): Positive, with room before overbought territory.

Price above 50 DMA (₹1,145) and 200 DMA (₹941): Clear uptrend.

52w Index (89.8%): Trading near yearly highs — strong sentiment.

Volume above average: Indicates active trader interest.

Fundamental Turnaround

PAT Qtr (₹106 Cr.) vs Prev Qtr (-₹50.8 Cr.): Significant earnings recovery.

Qtr Profit Var (+113%): Strong year-over-year growth.

EPS (₹1.57): Positive earnings after prior losses.

Debt-to-Equity (0.01): Virtually debt-free.

DII Holding Increase (+1.82%): Strong domestic institutional support.

⚠️ Risks

ROCE (-11.8%) and ROE (-12.0%): Still negative — long-term efficiency concerns.

No P/E or PEG Ratio: Reflects inconsistent profitability history.

Dividend Yield (0.00%): No passive income.

FII Holding Decline (-0.52%): Mild foreign investor pullback.

🎯 Optimal Entry Price

Entry Zone: ₹1,180–₹1,200

A pullback near this level offers a better risk-reward setup. Look for MACD strength and RSI climbing above 60 for confirmation.

🚪 Exit Strategy (If Already Holding)

Target Exit Price: ₹1,280–₹1,295

Near recent high and psychological resistance.

Stop Loss: ₹1,140

Just below 50 DMA and support zone.

Time Horizon: 1–2 weeks, depending on volume and RSI behavior.

This setup suits momentum-driven traders who are comfortable with volatility and can monitor technical signals closely. Let me know if you'd like help tracking this trade or scanning similar setups.

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