Lotus Eye Hospital & Institute Ltd Falls 8.02%: Circuit Limits Highlight Volatility

2 February: Lower Circuit Triggered Amid Heavy Selling Pressure

Lotus Eye Hospital & Institute Ltd opened the week on a sharply negative note, plunging 9.21% to close at ₹121.75 on 2 February 2026. The stock hit its lower circuit limit of 5% during the session, closing at ₹122.09, signalling intense selling pressure and panic among investors. The total traded volume was subdued at 0.093 lakh shares, with turnover of ₹0.115 crore, indicating limited liquidity amid the sell-off.

This decline was significantly steeper than the Sensex’s 1.03% fall, highlighting company-specific weakness. The stock’s weighted average price was closer to the day’s low, confirming that most trades occurred near the lower circuit band. Despite this sharp drop, the stock remained above its longer-term moving averages, suggesting the broader trend had not yet been decisively broken, though short-term momentum was clearly bearish.

3 February: Continued Decline Despite Market Rally

On 3 February, the stock extended its losses, falling another 2.96% to ₹118.15, even as the Sensex surged 2.63% to 36,755.96. This divergence underscored persistent weakness in Lotus Eye Hospital shares amid a broadly positive market environment. The volume declined to 0.043 lakh shares, reflecting cautious trading. Delivery volumes had surged the previous day, but the drop in price suggested that selling pressure remained dominant.

4 February: Upper Circuit Hit on Strong Buying Momentum

The stock staged a remarkable turnaround on 4 February, rallying 4.78% to ₹123.80 and hitting the upper circuit limit. This sharp rebound was driven by strong buying interest, with the stock closing at its intraday high and triggering a regulatory freeze on fresh orders. The traded volume was 0.084 lakh shares, with turnover of ₹0.102 crore, indicating demand outstripped supply despite modest volumes.

Lotus Eye Hospital outperformed its hospital sector peers, which declined 0.34%, and the Sensex’s modest 0.37% gain. The upper circuit event marked a reversal after four consecutive days of decline, signalling renewed investor enthusiasm. However, delivery volumes had dropped sharply, suggesting speculative trading rather than broad-based accumulation.

5 February: Minor Pullback After Rally

Following the upper circuit surge, the stock retreated 2.18% to ₹121.10 on 5 February, reflecting some profit-taking and consolidation. The Sensex also declined 0.53% that day, closing at 36,695.11. Trading volume was moderate at 0.086 lakh shares. The pullback after a strong rally is typical as investors reassess valuations and liquidity constraints in this micro-cap stock.

6 February: Week Ends with Modest Gain

On the final trading day of the week, Lotus Eye Hospital gained 1.86% to close at ₹123.35, recovering some losses. The Sensex edged up 0.10% to 36,730.20. However, volume was very low at just 0.01 lakh shares, indicating limited participation. The stock’s close near the week’s high suggests some renewed buying interest, but the overall weekly decline of 8.02% remains significant.

Key Takeaways

The week’s price action for Lotus Eye Hospital & Institute Ltd was marked by extreme volatility, with the stock hitting both lower and upper circuit limits within three trading days. This unusual pattern reflects a battle between strong selling pressure and sudden bursts of buying interest, typical of micro-cap stocks with limited liquidity.

Despite the midweek recovery, the stock closed the week down 8.02%, significantly underperforming the Sensex’s 1.51% gain. The sharp initial decline on 2 February was accompanied by increased delivery volumes, indicating genuine selling rather than mere intra-day volatility. Conversely, the upper circuit on 4 February was driven by speculative buying, with delivery volumes falling sharply, suggesting less conviction among long-term holders.

Technically, the stock remains above its longer-term moving averages, which may provide some support, but the short-term trend shows weakness. The Mojo Score of 58.0 and a ‘Hold’ rating reflect a cautious stance, acknowledging some improvement in fundamentals but also recognising ongoing risks.

Conclusion

Lotus Eye Hospital & Institute Ltd’s week was defined by heightened volatility and sharp price swings, underscoring the challenges micro-cap stocks face in balancing liquidity and investor sentiment. The lower circuit event early in the week highlighted significant selling pressure, while the upper circuit midweek demonstrated sudden bursts of buying enthusiasm. Despite these extremes, the stock ended the week lower, underperforming the broader market.

Investors should remain attentive to upcoming quarterly results and sector developments to better understand the sustainability of these price movements. The current ‘Hold’ Mojo Grade and the stock’s technical positioning suggest a cautious approach, with the potential for further volatility in the near term.

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