PAYTM - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.4
| Stock Code | PAYTM | Market Cap | 71,231 Cr. | Current Price | 1,112 ₹ | High / Low | 1,382 ₹ |
| Stock P/E | 147 | Book Value | 205 ₹ | Dividend Yield | 0.00 % | ROCE | 3.80 % |
| ROE | 3.72 % | Face Value | 1.00 ₹ | DMA 50 | 1,126 ₹ | DMA 200 | 1,124 ₹ |
| Chg in FII Hold | -2.35 % | Chg in DII Hold | 2.76 % | PAT Qtr | 98.0 Cr. | PAT Prev Qtr | 145 Cr. |
| RSI | 47.4 | MACD | 6.41 | Volume | 1,29,78,615 | Avg Vol 1Wk | 39,21,943 |
| Low price | 826 ₹ | High price | 1,382 ₹ | PEG Ratio | 4.70 | Debt to equity | 0.01 |
| 52w Index | 51.6 % | Qtr Profit Var | 292 % | EPS | 1.05 ₹ | Industry PE | 21.4 |
📊 Chart Analysis: PAYTM trades at ₹1,112, slightly below both its 50 DMA (₹1,126) and 200 DMA (₹1,124), showing weak technical positioning. RSI at 47.4 is neutral, while MACD at 6.41 indicates a mild bullish crossover. Bollinger Bands suggest consolidation with moderate volatility. Current volume (1,29,78,615) is significantly higher than the weekly average (39,21,943), reflecting strong participation despite price weakness.
📈 Momentum Signals: Short-term momentum is mildly positive, supported by strong trading volumes and MACD crossover. However, price trading below both moving averages signals resistance and long-term weakness.
💹 Entry & Exit Zones:
- ✅ Entry Zone: ₹1,090–₹1,120 (near support levels)
- 📉 Stop-Loss: ₹1,060 (below recent support)
- 🚀 Exit Zone: ₹1,150–₹1,180 (near DMA resistance)
🔎 Trend Status: The stock is currently consolidating between ₹1,090–₹1,150. A breakout above ₹1,180 could trigger bullish momentum, while a drop below ₹1,060 may signal reversal to weakness.
Positive
- 📌 Strong quarterly profit variation (+292%), showing operational improvement.
- 📌 EPS at ₹1.05, turning positive after losses in prior periods.
- 📌 DII holding increased (+2.76%), reflecting strong domestic institutional support.
- 📌 Very low debt-to-equity ratio (0.01), indicating financial stability.
Limitation
- ⚠️ Extremely high P/E ratio (147) compared to industry average (21.4), suggesting overvaluation.
- ⚠️ Weak ROE (3.72%) and ROCE (3.80%), showing poor capital efficiency.
- ⚠️ Dividend yield at 0%, limiting investor returns.
Company Negative News
- ❌ PAT declined from ₹145 Cr. to ₹98 Cr., showing reduced profitability.
- ❌ FII holding decreased (-2.35%), reflecting reduced foreign investor confidence.
Company Positive News
- ✅ EPS turned positive, showing earnings recovery.
- ✅ Strong trading volumes indicate continued investor interest.
Industry
- 🏭 Industry PE at 21.4, much lower than PAYTM’s valuation, suggesting premium pricing.
- 🏭 Fintech sector demand supported by digital adoption and regulatory push in India.
Conclusion
📌 PAYTM is consolidating with mild bullish signals but faces valuation concerns. Entry near ₹1,090–₹1,120 offers favorable risk-reward, with resistance at ₹1,150–₹1,180 as the next target. Long-term investors should be cautious due to high P/E and weak ROE/ROCE, while short-term traders may benefit from momentum-driven moves supported by strong volumes.
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