On Thursday, One97 Communications, the operator of payments and financial services company Paytm gave a strong merging breakout, forming a long, bullish candlestick pattern on the daily charts with solid volumes.
The stock witnessed a strong gap-up opening and plunged 6% to settle at Rs 772, the highest closing level since August 23, 2022, after conclusively breaking a month-long consolidation.
Overall, the stock gained strength after the golden crossover in the May-end 2023, with the 50-day EMA (exponential moving average) crossing the 200-day EMA on the higher side, considered a positive sign.
With Thursday’s rally, there witnessed a Bollinger band expansion on both sides, and the stock filled the bearish gap of August 29, 2022.
Now if the stock completed another bearish gap of August 12, 2022, and reclaimed its swing high of last August, then there could be a prospect of a big upward journey in future.
Broadly, the stock maintained higher top and higher bottom creation daily since it recorded a low in November last year, demonstrating a robust positive undertone. It has surged more than 76% from its record low.