Viji Finance Ltd Surges to Upper Circuit on Strong Buying Momentum

Strong Buying Momentum Drives Price to Upper Circuit

On the trading day, Viji Finance Ltd’s equity shares soared by ₹0.26, closing at ₹2.91, the highest price of the day and at the upper price band of 10%. The stock’s price fluctuated between ₹2.76 and ₹2.91, with a total traded volume of 3.55522 lakh shares, reflecting heightened market activity. The turnover for the day stood at ₹0.102 crore, underscoring the liquidity available despite the company’s micro-cap status with a market capitalisation of ₹38.00 crore.

The stock’s performance notably outpaced its sector peers, outperforming the NBFC sector by 10.02% and the broader Sensex by 9.83% on the day. This divergence highlights the focused buying interest in Viji Finance Ltd amid a generally subdued market environment, where the sector and benchmark indices posted marginal declines of -0.21% and -0.02%, respectively.

Investor Participation and Delivery Volumes Signal Confidence

Investor participation has been on the rise, with delivery volumes on 29 Dec 2025 reaching 1.11 lakh shares, an 8.53% increase compared to the five-day average. This uptick in delivery volume suggests that investors are not merely trading intraday but are holding shares, signalling confidence in the stock’s near-term prospects despite its recent negative grading.

Moreover, the stock’s price remains above its 5-day, 20-day, 50-day, and 200-day moving averages, indicating a short to medium-term positive momentum. However, it still trades below the 100-day moving average, suggesting some resistance at higher levels and a need for sustained buying to break through longer-term technical barriers.

Regulatory Freeze and Unfilled Demand Amplify Price Action

The upper circuit hit triggered an automatic regulatory freeze on the stock, halting further trading to curb excessive volatility. This freeze is a standard mechanism designed to protect investors and maintain orderly market conditions. The freeze also indicates that the demand for Viji Finance Ltd shares exceeded supply significantly, leaving a large volume of buy orders unfilled at the upper price limit.

Such unfilled demand often reflects speculative interest or anticipation of positive developments, although in this case, the stock’s recent downgrade to a Strong Sell by MarketsMOJO on 26 Nov 2025, from a previous Sell rating, tempers enthusiasm. The downgrade was based on a comprehensive analysis that assigned the stock a low Mojo Score of 16.0 and a market cap grade of 4, signalling elevated risk and limited upside potential.

Technical and Fundamental Outlook

From a technical perspective, the stock’s three-day consecutive gains have yielded a cumulative return of 15.94%, a notable rally for a micro-cap NBFC. This short-term momentum is supported by rising delivery volumes and price action above key moving averages, suggesting that buyers are currently in control.

However, fundamental concerns remain. The company’s micro-cap status and relatively low market capitalisation of ₹38 crore imply limited institutional interest and higher volatility. The Strong Sell Mojo Grade reflects underlying weaknesses in financial metrics and quality assessments, which investors should weigh carefully against the recent price surge.

Given these factors, the stock’s current rally may be driven more by speculative trading and short-term momentum rather than a fundamental turnaround. Investors should exercise caution and consider the broader NBFC sector dynamics, which remain challenging amid tightening credit conditions and regulatory scrutiny.

Sector Context and Market Implications

The NBFC sector has been under pressure due to macroeconomic headwinds, including rising interest rates and tighter liquidity conditions. Viji Finance Ltd’s outperformance on 30 Dec 2025 stands out against this backdrop, but it remains an isolated event rather than a sector-wide trend.

Investors looking at NBFC stocks should consider the broader credit environment, regulatory developments, and company-specific fundamentals. While Viji Finance Ltd’s upper circuit hit signals strong short-term demand, the stock’s micro-cap nature and recent negative grading suggest that it may not be suitable for risk-averse investors or those seeking stable income streams.

Market participants should also monitor upcoming corporate announcements and quarterly results for any signs of fundamental improvement or deterioration that could influence the stock’s trajectory beyond the current momentum-driven rally.

Conclusion

Viji Finance Ltd’s surge to the upper circuit on 30 Dec 2025 highlights the power of strong buying pressure and unfilled demand in driving micro-cap stocks higher, even amid a challenging sector environment and a recent downgrade to Strong Sell. While the rally reflects short-term optimism and increased investor participation, the stock’s fundamental weaknesses and regulatory freeze caution against complacency.

Investors should carefully balance the technical momentum with the underlying risks and consider alternative NBFC stocks with stronger fundamentals and higher Mojo Grades for a more balanced portfolio approach.

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