Viji Finance Ltd Surges to Upper Circuit on Robust Buying Momentum

Strong Buying Pressure Drives Price to Upper Circuit

On the trading day, Viji Finance Ltd’s stock price soared by ₹0.30, closing at ₹3.39, the highest price of the day and reaching the maximum permissible price band of 10%. The stock’s low for the day was ₹3.06, reflecting a wide intraday range that ultimately favoured buyers. The upper circuit hit indicates that demand for the stock exceeded supply to such an extent that trading was halted to prevent excessive volatility.

The total traded volume was substantial at 21.76 lakh shares, with a turnover of ₹0.705 crore. This volume is particularly noteworthy given the company’s micro-cap status, with a market capitalisation of just ₹44 crore. The surge in volume and price was accompanied by a delivery volume of 16.94 lakh shares on 6 Jan, which represents a staggering 144.74% increase compared to the five-day average delivery volume. This rising investor participation underscores a growing conviction among market participants.

Outperformance Amid Sector and Market Weakness

Viji Finance Ltd’s performance on the day was exceptional relative to its peers and broader indices. While the NBFC sector declined by 0.50% and the Sensex slipped by 0.30%, Viji Finance outperformed both by a wide margin, registering a 9.71% gain. This divergence highlights the stock’s unique momentum and the strong buying interest that propelled it to the upper circuit.

Moreover, the stock has been on a consistent upward trajectory, gaining for five consecutive trading sessions and delivering a cumulative return of 30.38% over this period. This sustained rally has pushed the stock price above all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling a robust technical uptrend.

Liquidity and Trading Dynamics

Despite its micro-cap status, Viji Finance demonstrated adequate liquidity for meaningful trade sizes. Based on 2% of the five-day average traded value, the stock can comfortably accommodate trade sizes of ₹0.01 crore, making it accessible for retail and institutional investors alike. The surge in delivery volumes further confirms that investors are not merely trading intraday but are willing to hold shares, reflecting confidence in the stock’s near-term prospects.

However, the stock’s sharp rise has triggered a regulatory freeze on fresh short positions, a standard measure to curb excessive speculative activity and maintain orderly market conditions. This freeze limits the ability of traders to short the stock, potentially contributing to the sustained buying pressure and upward price momentum.

Fundamental Outlook and Market Sentiment

While the technical and trading indicators paint a bullish picture, it is important to consider the company’s fundamental backdrop. Viji Finance currently holds a Mojo Score of 21.0 and a Mojo Grade of Strong Sell, downgraded from Sell as of 26 Nov 2025. This rating reflects concerns over the company’s financial health, operational challenges, and valuation metrics relative to peers.

The market cap grade of 4 indicates a micro-cap classification, which often entails higher volatility and risk. Investors should weigh the strong short-term price action against these fundamental cautionary signals. The recent rally may be driven by speculative interest or short-term catalysts rather than a fundamental turnaround.

Investor Takeaway

Viji Finance Ltd’s upper circuit hit on 7 Jan 2026 underscores a significant surge in buying interest and market enthusiasm. The stock’s outperformance relative to the NBFC sector and broader market indices, combined with rising delivery volumes and a sustained uptrend, signals strong short-term momentum. However, investors should remain cautious given the company’s fundamental challenges and the regulatory freeze on short selling, which may artificially constrain price movements.

For those considering exposure, it is prudent to monitor upcoming corporate developments, quarterly results, and sectoral trends closely. The stock’s micro-cap status and strong sell rating suggest elevated risk, making it suitable primarily for risk-tolerant investors with a speculative horizon.

In summary, while Viji Finance Ltd’s recent price action is impressive, a balanced approach that integrates both technical momentum and fundamental analysis is essential for informed investment decisions.

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