PAYTM - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 05 Nov 25, 7:43 am

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Technical Rating: 4.2

Technical Analysis Summary

• Trend: Trending upward with strong momentum
• Moving Averages: Price (₹1,303) is above both DMA 50 (₹1,215) and DMA 200 (₹1,013), confirming bullish alignment
• RSI (66.0): Bullish zone, nearing overbought territory
• MACD (30.3): Strong bullish crossover, supporting continued upside
• Bollinger Bands: Price near upper band, indicating strength but potential short-term resistance
• Volume: Below average (21.8L vs 26.5L), showing cautious participation

Entry & Exit Zones

• Support: ₹1,250 – ₹1,270 (recent base and near DMA 50)
• Resistance: ₹1,320 – ₹1,340 (recent high zone)
• Optimal Entry: ₹1,270 – ₹1,290 on pullback with MACD support
• Exit Zone: ₹1,320 – ₹1,340 if price stalls near resistance

Positive

• Quarterly PAT turnaround from ₹-50.8 Cr. to ₹106 Cr. (+113%)
• Price up 96.9% over 52 weeks, showing strong recovery
• EPS of ₹1.57 and minimal debt-to-equity ratio (0.01)
• Strong DII sentiment (+4.11%)

Limitation

• Negative ROCE (-11.8%) and ROE (-12.0%) reflect weak capital efficiency
• Volume below average, indicating lack of strong conviction
• FII holding declined by 3.16%, suggesting cautious foreign sentiment
• High valuation concerns with no visible P/E or PEG ratio

Company Negative News

• Regulatory scrutiny and competitive pressure in digital payments and lending segments

Company Positive News

• Return to profitability and expansion in financial services and merchant ecosystem
• Strong growth in loan disbursements and payment volumes

Industry

• PAYTM operates in the fintech and digital payments sector
• Peers include PhonePe, Google Pay, and BharatPe

Conclusion

PAYTM is currently trending upward with strong technical indicators and a notable turnaround in profitability. While valuation and foreign sentiment warrant caution, domestic institutional support and momentum favor a bullish outlook. Traders may consider entry near ₹1,270 with targets around ₹1,340, watching RSI and MACD for signs of continuation or reversal.