Shares of One 97 Communications Ltd, Paytm's parent, returned to positive territory in Friday's trade, snapping their four-day losing run. The stock hit a day high of Rs 542.90 against its previous close of Rs 508.40, as much as 6.79 per cent. The total of 5.99 lakh shares changed hands on the BSE, which had a turnover of Rs 31.88 crore. The company's market capitalisation or m-cap was at Rs 34,333. Nearly 84 crore was down more than Rs 85,000 crore from its peak value of around Rs 1.2 lakh crore.
The stock has fallen 2.57 per cent in the last five sessions. It has plunged 60.49 per cent on a year-to-date YTD basis.
AK Prabhakar, Head of Capital, IDBI Capital said that Paytm shares moved higher due to the announcement of a share buyback proposal next week. The digital payments firm said it would hold a board meeting on December 13 to discuss a proposal for the buyback of equity shares.
A company buys back shares from investors or shareholders, usually at a price higher than the market price, because of a share buyback process.
After a good recovery from its 52 week lows, Paytm stock price finds itself at a strong resistance zone of Rs 548 -- 565, according to Pavitraa Shetty from Tips 2 trades. The investors who had bought near lows should book profits at current levels. Buy can only be initiated if daily close above Rs 565 or wait for a dip near 490. Anand James, Chief Market Strategist at Geojit Financial Services, said Paytm's recent recovery rallies are looking to shape up a proper reverse pattern, encouraging us to scout for Rs 575 to 626 within a 1 to 2 month time frame. Paytm made a tepid debut on the exchanges in November of last year. The shares have mostly recorded losses since then.
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India's equity benchmarks swung into the red amid a volatile session today, dragged by technology stocks.