After an initial disappointing performance post listing, the shares of One97 Communications-owned Paytm have pared some of its losses.
The payment service provider company’s shares were listed on the exchanges on November 18, 2021. On the listing day, the company’s shares closed 27 per cent lower at Rs 1,564.
The company had an offer price of Rs 2,150.
However, by the week’s end, it made a partial recovery. On Friday, the company’s shares closed 1.8 per cent lower from the previous close at Rs 1,765.
“After the listing at discount and steep fall in Paytm’s share for two consecutive days, we have seen value buying in the stock which has pushed it higher,” said Gaurav Garg, Head of Research at CapitalVia Global Research.
In the short-to-medium term, Garg expects the stock to stabilise at around Rs 1,650-1,750 levels.
“For the next leg of the rally, it is to be seen how the company performs,” Garg added.
According to Sachin Gupta, AVP, Research, at Choice Broking: “Technically, the stock is in recovery mode with rising volume activities… (So) we are expecting a bullish move in the stock.
“On the upside, the stock may find the resistance at around Rs 1,950/2,100 levels, while the support comes around 1,500/1,350 levels.”