Viji Finance Ltd Surges to Upper Circuit on Robust Buying Momentum

Strong Buying Momentum and Price Action

On the trading day, Viji Finance Ltd’s stock price moved decisively within its price band of 5%, opening at ₹3.42 and touching a high of ₹3.54 before closing at the upper circuit price limit. The stock recorded a total traded volume of approximately 2.67 lakh shares, with a turnover of ₹0.0936 crore, reflecting robust liquidity for a micro-cap stock with a market capitalisation of ₹49.00 crore.

The 4.73% gain outperformed the NBFC sector’s marginal decline of 0.09% and the broader Sensex’s fall of 0.17%, underscoring the stock’s relative strength amid a subdued market environment. This marks the sixth consecutive day of gains for Viji Finance, cumulatively delivering a 36.15% return over this period, a remarkable feat for a stock with a Strong Sell mojo grade of 21.0 as of 26 November 2025.

Investor Participation and Delivery Volumes

One of the key drivers behind the price surge was the significant rise in delivery volumes. On 7 January 2026, the stock saw a delivery volume of 19.43 lakh shares, a staggering 153.91% increase compared to its five-day average delivery volume. This surge in delivery volumes indicates genuine investor interest and accumulation rather than speculative intraday trading.

Moreover, Viji Finance is trading above all major moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling a strong upward trend and positive technical momentum. Such alignment across multiple moving averages often attracts momentum traders and institutional investors looking for sustained price appreciation.

Regulatory Freeze and Unfilled Demand

The stock’s upper circuit hit triggered an automatic regulatory freeze on further buying for the day, a mechanism designed to curb excessive volatility and speculative excesses. This freeze often results in unfilled buy orders accumulating on the order book, signalling strong latent demand that could fuel further price appreciation once the freeze is lifted.

Despite the strong buying pressure, the total traded turnover remained modest at ₹0.0936 crore, reflecting the micro-cap nature of Viji Finance Ltd. This limited liquidity can amplify price movements, as relatively small volumes can push prices sharply higher or lower.

Fundamental and Market Context

Viji Finance operates within the NBFC sector, a segment that has faced mixed investor sentiment due to regulatory scrutiny and credit risk concerns. The company’s mojo grade was downgraded from Sell to Strong Sell on 26 November 2025, reflecting deteriorating fundamentals or risk factors identified by MarketsMOJO’s proprietary scoring system. The current mojo score of 21.0 places it among the weaker performers in the sector.

However, the recent price action suggests that market participants are either anticipating a turnaround or are attracted by the stock’s technical momentum and micro-cap volatility. The stock’s market cap grade of 4 indicates a relatively low market capitalisation, which often results in higher volatility and sharper price swings compared to larger NBFC peers.

Investors should weigh the strong short-term technical signals against the company’s fundamental challenges and the sector’s overall outlook before making investment decisions.

Liquidity and Trading Considerations

Liquidity analysis reveals that Viji Finance is sufficiently liquid for trade sizes up to ₹0.01 crore, based on 2% of its five-day average traded value. This level of liquidity is typical for micro-cap stocks and suggests that while institutional participation may be limited, retail investors and smaller traders can transact without significant price impact.

Given the stock’s recent six-day rally and upper circuit hit, traders should be cautious of potential profit booking or volatility spikes in the near term. The regulatory freeze mechanism also means that any further buying interest today will remain unexecuted, potentially leading to a volatile opening in the next trading session.

Outlook and Investor Takeaways

Viji Finance Ltd’s recent price surge and upper circuit hit highlight the stock’s potential for short-term momentum plays within the NBFC micro-cap space. The strong buying pressure, rising delivery volumes, and technical strength across multiple moving averages provide a bullish technical backdrop.

However, investors must remain mindful of the company’s fundamental weaknesses as reflected in its Strong Sell mojo grade and the inherent risks associated with micro-cap stocks, including limited liquidity and higher volatility. The regulatory freeze on further buying today underscores the market’s cautious approach to managing price extremes.

For long-term investors, it is advisable to monitor upcoming quarterly results, sector developments, and any changes in the company’s mojo grade or market cap grade before committing significant capital. Traders may consider short-term opportunities but should employ disciplined risk management given the stock’s volatile nature.

In summary, Viji Finance Ltd’s upper circuit hit on 8 January 2026 is a clear signal of strong market interest and technical momentum, but it remains a stock that demands careful analysis and prudent investment decisions.

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