Viceroy Hotels Ltd Falls 4.83%: 3 Key Factors Driving the Weekly Decline

29 December 2025: Upper Circuit Triggered on Strong Buying

Viceroy Hotels Ltd began the week on a bullish note, surging 1.28% to close at Rs.149.80 on 29 December 2025. The stock hit its upper circuit limit during the session, reaching an intraday high of Rs.153.69, a 4.99% gain from the previous close. This rally was driven by robust buying interest and market optimism, with the stock outperforming the Sensex, which declined 0.41% that day.

Technically, the stock was trading above all key moving averages, signalling strong momentum. However, despite the price surge, trading volumes remained modest at 11,615 shares, and delivery volumes had sharply declined, indicating speculative buying rather than sustained investor conviction. The upper circuit hit led to a regulatory freeze on further buying, reflecting unfilled demand at elevated price levels.

Notably, Viceroy Hotels held a Mojo Score of 44.0 with a Sell grade, suggesting cautious fundamentals despite the price strength. The Hotels & Resorts sector showed only a marginal gain of 0.19%, highlighting the stock’s relative outperformance on this day.

30 December 2025: Sharp Reversal Begins

The positive momentum reversed sharply on 30 December, with Viceroy Hotels closing at Rs.144.65, down 3.44% on the day. The stock underperformed the Sensex, which was nearly flat, declining just 0.01%. Trading volumes dropped to 8,188 shares, and delivery volumes continued their steep decline, signalling waning investor confidence and increasing selling pressure.

This day marked the start of a two-day downward trend, with the stock losing over 6% cumulatively by the end of 31 December. The decline reflected a shift in sentiment, possibly triggered by profit-taking or concerns over the stock’s fundamentals amid its recent price surge.

31 December 2025: Lower Circuit Hit Amid Heavy Selling

On the last trading day of 2025, Viceroy Hotels plunged to its lower circuit limit, closing at Rs.139.90, down 3.28% for the day and triggering a 5% intraday fall to Rs.136.59. This sharp decline was driven by intense selling pressure and panic among investors, with the stock underperforming both its sector, which gained 0.98%, and the Sensex, which rose 0.83%.

Trading volumes remained subdued at 4,512 shares, and delivery volumes fell by 81.7% compared to the five-day average, indicating a lack of genuine investor holding interest. The stock’s technical position weakened, falling below its 5-day moving average, though it remained above longer-term averages, suggesting short-term weakness amid a still intact longer-term trend.

The downgrade in Mojo Grade to Sell from Strong Sell earlier in the year did not prevent this sharp correction, highlighting ongoing fundamental and technical challenges for the micro-cap stock.

1 January 2026: Continued Weakness on Low Volumes

Trading on 1 January saw Viceroy Hotels decline further by 4.18% to Rs.134.05, with volumes dropping to 3,073 shares. The stock continued to underperform the Sensex, which gained 0.14%. This persistent weakness amid low liquidity underscored the cautious stance of market participants entering the new year.

2 January 2026: Technical Momentum Shifts Amid Mixed Signals

On 2 January, the stock rebounded sharply, gaining 5.00% to close at Rs.140.75 on exceptionally high volume of 7,98,916 shares. This surge followed a volatile session with an intraday range between Rs.133.15 and Rs.139.00. Despite the recovery, technical indicators presented a mixed picture.

While daily moving averages remained bullish, weekly and monthly indicators such as MACD and KST oscillators showed signs of weakening momentum. The Relative Strength Index hovered in neutral territory, and Bollinger Bands suggested contained volatility within an upward channel. On-balance volume was bullish on the weekly chart but inconclusive monthly, reflecting a consolidation phase after a strong multi-year rally.

Viceroy Hotels’ long-term performance remains impressive, with a 13.33% return over the past year and an extraordinary 8,900.38% gain over three years, far outpacing the Sensex. However, the recent technical moderation and mixed signals advise caution in the near term.

Key Takeaways

Positive Signals: The upper circuit hit on 29 December demonstrated strong buying interest and technical momentum, with the stock trading above key moving averages. The sharp rebound on 2 January on heavy volume suggests potential for near-term stabilisation.

Cautionary Signals: The stock underperformed the Sensex by 6.18% over the week, reflecting significant volatility and investor uncertainty. The lower circuit hit on 31 December and continued weakness on 1 January highlight intense selling pressure and declining delivery volumes, indicating reduced investor conviction. Mixed technical indicators, including a mildly bearish monthly MACD and KST, suggest momentum is moderating.

Fundamental Context: Viceroy Hotels remains a micro-cap with a Mojo Score of 37.0 and a Sell grade, reflecting cautious fundamentals despite its impressive long-term returns. The Hotels & Resorts sector’s gradual recovery provides some tailwind, but liquidity constraints and volatility warrant vigilance.

Conclusion

Viceroy Hotels Ltd’s week was marked by sharp swings, from an upper circuit surge to a lower circuit plunge, culminating in a volatile recovery amid mixed technical signals. While the stock’s long-term performance remains strong, the recent price action and fundamental assessments suggest a cautious near-term outlook. Investors should monitor volume trends, technical momentum, and sector developments closely before making decisions. The stock’s underperformance relative to the Sensex and the decline in delivery volumes highlight the risks inherent in micro-cap stocks within a recovering but still uncertain Hotels & Resorts sector.

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