PAYTM - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 20 Dec 25, 03:55 pm

Technical Rating: 3.4

📊 Chart Patterns: PAYTM is trading at 1,337 ₹, close to its 52-week high (1,382 ₹). The chart shows a strong recovery from its low (652 ₹), but momentum is slowing near resistance.

📈 Moving Averages: Price is above both 50 DMA (1,280 ₹) and 200 DMA (1,097 ₹), confirming medium-term bullish sentiment.

📉 RSI: At 47.6, RSI is neutral, suggesting consolidation with balanced momentum.

📉 MACD: Slightly negative (-1.86), showing weak bearish crossover and short-term hesitation.

📊 Bollinger Bands: Price is near the upper band, indicating strength but also potential short-term resistance.

📊 Volume Trends: Current volume (23.6 lakh) is slightly above average weekly volume (20.5 lakh), showing strong participation and heightened activity.

📍 Momentum Signals: Short-term momentum is consolidating. RSI and MACD suggest sideways movement before a possible breakout.

🎯 Entry Zone: 1,300–1,320 ₹ (near DMA 50 support). Good accumulation zone for traders.

🎯 Exit Zone: 1,370–1,380 ₹ (near 52-week high resistance). Profit booking advised around 1,382 ₹.

🔎 Trend Status: The stock is consolidating near resistance after a strong rally.

Positive

• Sequential PAT growth (131 Cr. vs 106 Cr.), showing improvement.
• DII holdings increased significantly (+4.11%), showing domestic investor confidence.
• Debt-to-equity ratio is very low (0.01), ensuring financial stability.
• Strong recovery from 52-week low (652 ₹ to 1,337 ₹).

Limitation

• Negative ROCE (-11.8%) and ROE (-12.0%) indicate poor efficiency.
• EPS negative (-15.5 ₹), showing lack of profitability.
• No dividend yield (0.00%), reducing investor appeal.
• MACD slightly negative, showing short-term hesitation.

Company Negative News

• FII holdings declined (-3.16%).
• Company continues to report negative EPS (-15.5 ₹).

Company Positive News

• Sequential PAT growth (+23%).
• DII holdings increased (+4.11%).
• Debt-free balance sheet strengthens investor confidence.

Industry

• Industry PE is 31.6, but PAYTM has no meaningful P/E due to losses.
• Fintech sector remains growth-oriented, supported by digital adoption and rising transaction volumes.

Conclusion

⚠️ PAYTM is consolidating near resistance with neutral technical momentum. Fundamentals show improving profitability and strong domestic investor support, but negative efficiency metrics and lack of dividend limit upside. Traders may consider entries near 1,300–1,320 ₹ with exits around 1,370–1,380 ₹. Long-term investors should wait for sustained profitability before committing further.