Viceroy Hotels Ltd Falls 6.87% Amid Mixed Technical Signals and Heavy Selling

27 January: Lower Circuit Triggered Amid Heavy Selling

On 27 Jan 2026, Viceroy Hotels Ltd’s shares plunged sharply, hitting the lower circuit limit at ₹135.75, marking a 5.0% intraday loss and signalling intense selling pressure. The stock closed at ₹143.60, down 1.41% from the previous close, but intraday volatility was significant with a 7.93% price range between ₹135.75 and ₹143.51. This decline reversed the two-day gains the stock had previously enjoyed and underperformed the Hotels & Resorts sector by 1.02% on the day.

The lower circuit was triggered due to a surge in sell orders overwhelming available bids, resulting in unfilled supply and a trading halt at the lower price band. Despite the stock trading above its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, panic selling dominated the session. Trading volume was moderate at 31,572 shares, with delivery volumes declining by 13.3% compared to the five-day average, indicating waning investor conviction.

Viceroy Hotels’ market capitalisation stood at ₹966.31 crore, categorising it as a micro-cap stock. The broader market was positive, with the Sensex gaining 0.50% to close at 35,786.84, highlighting that the stock’s sharp fall was driven by company-specific factors rather than sector or market-wide trends.

27 January: Mixed Technical Signals Amid Bullish Momentum Shift

Coinciding with the lower circuit event, technical analysis on 27 Jan revealed a complex picture. The stock demonstrated a bullish momentum shift on daily and weekly indicators, with the weekly MACD turning positive and the stock trading comfortably above key daily moving averages. The On-Balance Volume (OBV) was mildly bullish on a weekly basis, suggesting accumulation despite the price drop.

However, monthly technical indicators remained mixed or mildly bearish, with the monthly MACD and KST oscillators signalling caution. Bollinger Bands readings were bullish on weekly and monthly timeframes, indicating price strength near the upper bands, but the Dow Theory readings showed a mildly bearish weekly outlook. This divergence between short-term bullishness and longer-term caution reflects uncertainty among investors about the stock’s sustained direction.

The company’s Mojo Score was 44.0, classified as a Sell rating, an improvement from a previous Strong Sell grade. This upgrade reflects some positive technical momentum but remains below neutral, signalling that risks persist despite recent gains.

28-30 January: Continued Downtrend Despite Sensex Gains

Following the lower circuit event, Viceroy Hotels Ltd’s shares continued to decline steadily over the next three trading days. On 28 Jan, the stock fell 1.88% to ₹140.90 on very low volume of 1,650 shares, while the Sensex surged 1.12% to 36,188.16. The divergence between the stock’s weakness and the broader market’s strength was stark.

On 29 Jan, the decline accelerated with a 2.34% drop to ₹137.60 on volume of 17,574 shares, despite the Sensex gaining a further 0.22%. The stock’s underperformance persisted into 30 Jan, closing at ₹135.65, down 1.42%, while the Sensex slipped 0.22% to 36,185.03. The cumulative weekly loss of 6.87% contrasted sharply with the Sensex’s 1.62% gain, underscoring the stock’s relative weakness.

Volume patterns suggest that investor interest waned as the week progressed, with a notable drop in traded shares on 28 Jan and moderate volumes on 29 and 30 Jan. The stock’s failure to hold above key moving averages during this period indicates a loss of short-term momentum and increased selling pressure.

Daily Price Performance vs Sensex

Key Takeaways

Negative Signals: The week was dominated by a sharp decline culminating in a lower circuit hit on 27 Jan, signalling panic selling and unfilled supply at lower price levels. The stock underperformed the Sensex by 8.49% over the week, reflecting company-specific weakness. Declining delivery volumes and moderate liquidity suggest waning investor conviction. Monthly technical indicators remain mixed or bearish, indicating caution for longer-term investors.

Positive Signals: Despite the sell-off, daily and weekly technical indicators showed a bullish momentum shift earlier in the week, supported by strong daily moving averages and volume-based accumulation signals. The Mojo Score upgrade from Strong Sell to Sell reflects some improvement in outlook. The stock’s trading above key moving averages prior to the sell-off suggests underlying technical support exists, though it was overwhelmed by selling pressure.

Sector Context: Operating in the Hotels & Resorts sector, Viceroy Hotels faces a volatile environment amid a recovering travel industry. The stock’s divergence from sector and market gains highlights company-specific challenges rather than broad sector weakness.

Conclusion

Viceroy Hotels Ltd’s performance in the week ending 30 Jan 2026 was marked by a significant correction, with the stock falling 6.87% and hitting its lower circuit amid heavy selling pressure. While technical indicators showed a bullish momentum shift earlier, the sharp decline and persistent underperformance relative to the Sensex underscore heightened risk and investor caution. The mixed technical signals and modest volume trends suggest that the stock remains vulnerable to further volatility. Investors should monitor upcoming trading sessions closely for signs of stabilisation or further deterioration, particularly in the context of broader market and sector developments.

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