Saturday, June 18, 2022

Is It Right Time To Go With PayTm?

I think yes, as everyone knows PayTm and its business module. PayTm launched its IPO in November 2021 and many peoples applied for it. They were expecting a listing gain as listing gain was trending. However, the stock price has fallen from 1950 after listing, and right now it is at 630. Price is at a lifetime low that is not the reason to buy. Let’s discuss the chart and fundamentals.

Fundamentals: PayTm provides services like Merchants, paying bills, recharges, transferring money, online shopping, book movie & travel tickets. Also, they are coming into financial services and products. We can say that PayTm is all in one, right now they are focusing on business expansion. Currently, the company is making a loss but the company is almost debt-free. Assets are increasing and the company has good cash flow. Once they settle down in the business then the net profit will increase. As per our study business is good and demand in the future.

Monthly Chart: Price has nonstop fallen from November 2021 to March 2022. Then stock has taken rest and made Inverted Hammer on a chart with high volumes. The next candle is positive and confirmed Morning Star.

Weekly Chart: This time frame shows a Narrow Triangle that has Lower Low and Higher Low. However overall chart’s behavior and volumes are showing big bulls are accumulating the stock. They are building the bottom on the chart. We just need breakout for more up moves, so we can also enjoy a bull ride.

Daily Chart: On a shorter time frame stock has made Cup & Handle and showing buying in every fall with high volumes. We can say that big players or institutions are adding it to the portfolio.

We are bullish on the stock from the current levels for the next 1-3 years.



Disclaimer: The contents produced here are purely for educational purposes. They should not be construed as buy/sell recommendations. I am not a SEBI registered Analyst or Investment Advisor. Readers are advised to consult their Investment advisor before taking any decisions based on the above write-up.

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