Vaxtex Cotfab Hits Lower Circuit Amid Heavy Selling Pressure

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Shares of Vaxtex Cotfab Ltd, a micro-cap player in the Garments & Apparels sector, faced intense selling pressure on 15 Dec 2025, hitting the lower circuit price limit and closing at ₹2.09. The stock underperformed both its sector and the broader market, reflecting a day marked by panic selling and unfilled supply.



Market Performance and Price Movement


On the trading day, Vaxtex Cotfab’s stock price declined by 4.57%, reaching the lower circuit limit of ₹2.09. This maximum permissible daily loss capped further declines, signalling significant bearish sentiment among investors. The stock’s price band for the day was ₹5, with both the high and low price recorded at ₹2.09, indicating that the stock remained at the lower threshold throughout the session.


In comparison, the Garments & Apparels sector index registered a modest decline of 0.39%, while the Sensex closed down by 0.49%. This divergence highlights Vaxtex Cotfab’s relative underperformance amid broader market weakness.



Trading Volumes and Liquidity


Trading activity in Vaxtex Cotfab was notable, with a total traded volume of approximately 2.08 lakh shares. The turnover for the day stood at ₹0.043 crore, reflecting moderate liquidity for a micro-cap stock. Based on 2% of the five-day average traded value, the stock is considered sufficiently liquid to accommodate trade sizes of around ₹0.02 crore, which is relevant for investors considering position sizing.



Technical Indicators and Moving Averages


From a technical perspective, the stock’s last traded price (LTP) of ₹2.09 was positioned above its 20-day, 50-day, 100-day, and 200-day moving averages, suggesting that the longer-term trend has not been severely compromised. However, the LTP was below the 5-day moving average, signalling short-term weakness and potential downward momentum. This technical setup may have contributed to the heightened selling pressure observed during the session.




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Investor Sentiment and Market Context


The sharp decline and circuit hit reflect a wave of panic selling among shareholders, possibly triggered by recent shifts in market assessment or broader sectoral pressures. The Garments & Apparels industry has faced challenges related to fluctuating demand and input cost volatility, which may have influenced investor confidence in Vaxtex Cotfab.


With a market capitalisation of ₹38.40 crore, Vaxtex Cotfab is classified as a micro-cap stock, which often entails higher volatility and sensitivity to market news. The stock’s performance today underscores the risks associated with smaller companies in the current market environment.



Unfilled Supply and Price Pressure


The lower circuit hit indicates that sell orders overwhelmed buy orders, leaving a significant amount of supply unfilled at prices below ₹2.09. This imbalance suggests that sellers were eager to exit positions, but buyers were reluctant to step in at lower levels, exacerbating downward price pressure.


Such unfilled supply can lead to further volatility in subsequent sessions, as market participants reassess valuations and risk appetite. Investors should monitor trading volumes and price action closely to gauge whether the selling pressure persists or if a recovery attempt emerges.



Comparative Sector and Market Returns


While Vaxtex Cotfab’s stock declined by 4.57%, the Garments & Apparels sector’s one-day return was a comparatively modest negative 0.39%. The Sensex, representing the broader market, recorded a 0.49% loss. This relative underperformance highlights company-specific factors influencing Vaxtex Cotfab’s share price beyond general market trends.




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Outlook and Considerations for Investors


Given the current market dynamics, investors in Vaxtex Cotfab should exercise caution. The stock’s micro-cap status and recent price action suggest elevated risk levels. While the longer-term moving averages remain supportive, the immediate technical signals and heavy selling pressure warrant close monitoring.


Market participants may wish to consider the broader sector trends and company fundamentals before making investment decisions. The unfilled supply at the lower circuit price indicates potential volatility ahead, and any further negative news or sectoral headwinds could influence the stock’s trajectory.


Conversely, should buying interest return and absorb the excess supply, the stock may stabilise or attempt a recovery. Investors should watch for changes in volume patterns and price behaviour in the coming sessions to better understand market sentiment.



Summary


Vaxtex Cotfab’s stock closing at the lower circuit price of ₹2.09 on 15 Dec 2025 highlights significant selling pressure and investor caution within the Garments & Apparels sector. The stock’s 4.57% decline outpaced sector and market losses, reflecting company-specific challenges and market sentiment shifts. Moderate liquidity and technical indicators present a mixed picture, underscoring the need for careful analysis and risk management by investors.



As the market digests these developments, Vaxtex Cotfab’s price action will remain a key focus for traders and shareholders alike, with the potential for continued volatility in the near term.






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