Paytm snaps two-day winning streak, hits lower circuit; Read to find out why?

After snapping two days of winning streak, shares of One97 Communication, parent of Paytm, fell 10% to hit the lower circuit of Rs 446.65 on February 08.

The Reserve Bank of India’s Deputy Governor Swaminathan J in a post-Monetary Policy Committee press conference said that the actions on Paytm Payments Bank were due to continued non-compliance of the regulatory norms.

According to Ajit Mishra, senior vice president of technical research at Religare Broking, “the move indicates more pain ahead and it could retest the recent low i.e. 395,” a 52-week low level, which it hit on February 06. Also, the investors must refrain from taking new positions on the company’s stock till there’s any clarity, he added.