Paytm shares remain sell-on-rise after 2-day rally: Rupak De

economictimes.indiatimes.com:

rally, Paytm shares remain in the sell-on-rise category as selling is expected at higher levels, says Rupak De, Senior Technical Analyst at LKP Securities.

“Therefore, sellers might return at those higher levels. On the other hand, a short-term trader might consider buying this stock with a stop loss at Rs 334 for an upside target of Rs 368/390,” he says.

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Edited excerpts:

How worrisome was this week's decline for the sustenance of the bull run? What do the charts tell you?

Bears remained at the helm throughout the week as the Nifty slipped by approximately 2% in the first four days. Indian equity carried the weak sentiment throughout the week, which started on the last day of the previous week. On the daily chart, the index has broken down from the rising channel, indicating a rise in bearish sentiment. The trend is likely to remain weak in the near term, with resistance noted at 22,200. As long as the Nifty remains below this level, a strategy of selling on rallies may be favorable for traders. Support at the lower end is situated at 21,950 on a sustained basis; a decisive drop below this level could trigger panic in the market. Conversely, a sustained move above 22,200 could propel the market upward, potentially resuming Nifty's uptrend.

Nifty PSU Bank index was among