Namaste!
As you can see in the following chart, the stock has been in a strong downtrend in weekly chart.
You can witness that it didn't break the highs of any weekly candles except the one.
There is always a resistance at the highs of red candles. But, if the resistance get's hit many time, it become weak and there is a good probability of price moving higher.
So, I would say, if you were waiting for investment opportunity (in PAYTM), this is the right time to buy if it crosses Rs 596 price.
You can consider buying half the investment amount (ideally 5% of your investment capital), and next half at another red candle's high break (means another red candle(W) being created after the entry then break of highs).
Disclaimer: I am not a SEBI certified investment advisor. The facts and suggestion given in the above article is based on my understanding and experience in the markets. Please consult your financial advisor before investing.
As you can see in the following chart, the stock has been in a strong downtrend in weekly chart.
You can witness that it didn't break the highs of any weekly candles except the one.
There is always a resistance at the highs of red candles. But, if the resistance get's hit many time, it become weak and there is a good probability of price moving higher.
So, I would say, if you were waiting for investment opportunity (in PAYTM), this is the right time to buy if it crosses Rs 596 price.
You can consider buying half the investment amount (ideally 5% of your investment capital), and next half at another red candle's high break (means another red candle(W) being created after the entry then break of highs).
Disclaimer: I am not a SEBI certified investment advisor. The facts and suggestion given in the above article is based on my understanding and experience in the markets. Please consult your financial advisor before investing.
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Falling sell volume indicates that sellers are not interested to sell more. It means buyers are getting into the stock. Hopefully, we may see buying in the coming weeks.
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Another half position remaining position can be bought when move near Rs 573.50.
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Closing above the previous weekly candle's high is a strong indication for price moving higher.
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The most concerning factor about PayTm is increasing losses (-EPS) YoY. This isn't a good indication. Consecutive 3 years increasing EPS is good fundamentally and when PayTm show this, shares will boom.
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PayTM has to show an EPS of Rs 28 (current Rs -36.1 loss) in the coming 2-3 years. In case you were wondering why loss making start-ups trade at a such high valuations (like Nykaa 1,611 P/E), this is because the investors expect the profit (positive EPS) in the future. PayTM is loss making today, but considering it's market share, it might make EPS of Rs 28 in the future, as they are betting (or say speculating) in the company. Stock market is always forward-looking.
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I expect anyone who is reading my writings to know that there is nothing "certain" in the markets. Neither the %gain on stock nor "out-performance" or "under-performance". There is a risk and opportunity cost involved in both, buying and selling. Selling at any price can often result in "opportunity loss" when the stock moves higher and higher. Human psychology is a culprit here. For e.g. I post any stock which seems undervalued or overvalued to me on tradingview. When anyone makes money on that, they wont appreciate me "a single word". But when they lose or it results in opportunity loss, they are bound to blame me. I don't criticize any person, because I know their psychology has defeated them. At last, there is nothing like "easy money" in the markets. The survival of the fittest holds absolutely true here.