One 97 Communications Ltd (Paytm) has been identified as a significant momentum play in the recent market rally, with a prominent analyst forecasting a potential climb to Rs 1,800. Akshay Bhagwat, Senior VP of Derivatives Research at JM Financial Ltd, advises short-term investors currently holding positions to maintain them, anticipating further upward movement.
Analyst Sees Continued Upside for Paytm Stock
Bhagwat highlighted Paytm's impressive performance, noting its substantial gains over the past three months, particularly in August. He believes this strong momentum still has room to extend, projecting that the stock could reach Rs 1,800 in what he describes as the “last leg of momentum run.”
The bullish outlook emerges at a time when India's digital payments sector is drawing renewed investor attention, especially with the recent 10th anniversary of the Unified Payments Interface (UPI).
Trading Strategy for Short-Term Investors
For traders and short-term investors, the recommendation is to continue holding existing long positions, but with a clear focus on disciplined risk management. Bhagwat established immediate support for Paytm shares at Rs 1,650 and suggested implementing a stop loss at Rs 1,600 to protect against potential downside. Investors are advised to consider booking profits as the stock approaches the Rs 1,800 mark, framing it as a momentum trade rather than a long-term conviction buy.
Why Paytm Is Back in Focus
Paytm's market narrative has historically been closely linked to India's burgeoning digital payments landscape. As an early and visible player in the UPI ecosystem, the company often benefited from the sector's growth. Despite a history of volatility, the current rally appears driven by technical strength and a renewed market appetite for high-beta fintech stocks, rather than solely its foundational story.
This positive assessment for Paytm also comes amidst a broader market environment characterized by choppiness, with banking and financial stocks generally leading the session. In such conditions, stocks exhibiting decisive price momentum often attract significant trader interest, a category in which Paytm currently finds itself firmly placed.