Paytm Stock Price: Several brokerage firms have downgraded the Paytm stock following RBI action.
Paytm Share Price: Paytm shares rose by 5 percent as the stock hit the upper circuit for the second consecutive session. This increase coincided with the company’s partnership with Axis Bank for settling merchant payments, wherein it shifted its nodal account through an escrow account. Additionally, this development coincided with the Reserve Bank of India (RBI) extending the deadline for halting operations for Paytm Payments Bank account holders until March 15.
Some brokerage firms have downgraded the Paytm stock following RBI action. Global brokerage firm Macquarie, in its recent report, downgraded the stock’s rating to ‘underperform’ and significantly lowered its target price to ₹275 per share from an earlier target price of ₹650.
Jigar S. Patel, Senior Manager of Equity Research at Anand Rathi Share and Stock Brokers, stated to Mint, “Should there be any potential upward movement from lower levels, it may serve as an opportunity to exit positions. The daily Stochastics indicator has entered the oversold zone, suggesting a continuation of bearish momentum. Consequently, traders are advised to stay away from this counter.”
Milan Vaishnav, CMT, MSTA, Founder and Technical Analyst of Gemstone Equity Research and ChartWizard FZE, advised that investors should strictly avoid the stock. He mentioned, “Given the kind of turmoil the company is in, it would be prudent not to add any more quantity even if it is available at a deep discount. While staying put with the investments and taking a steep cut would make no sense for the investors, any fresh or incremental exposure in the stock should be strictly avoided.”
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