Viji Finance Hits Lower Circuit Amid Heavy Selling Pressure and Market Volatility

Market Performance and Price Movement

On the trading day, Viji Finance’s stock price moved within a band of ₹2.43 to ₹2.74, ultimately settling near the lower end at ₹2.52. This represented a decline of ₹0.19 or 7.01% from the previous close, triggering the lower circuit mechanism designed to curb excessive volatility. The stock’s performance notably underperformed its sector, which saw a marginal decline of 0.51%, and the broader Sensex index, which fell by 0.37% on the same day.

Over the last two trading sessions, Viji Finance has recorded a cumulative return of -10.55%, indicating sustained downward momentum. The stock is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling a bearish trend and weak technical positioning.

Trading Volumes and Liquidity Concerns

Trading volumes for Viji Finance on 2 December reached approximately 4.48 lakh shares, with a turnover of ₹0.11 crore. Despite this volume, delivery volumes have shown a marked decline, with only 1.1 lakh shares delivered on 1 December, down by 81.8% compared to the five-day average delivery volume. This sharp drop in delivery participation suggests a waning interest from long-term investors and a predominance of short-term speculative trading.

Liquidity remains a challenge for Viji Finance, given its micro-cap status and modest market capitalisation of ₹37 crore. The stock’s liquidity, measured against 2% of the five-day average traded value, indicates that it can accommodate only limited trade sizes without significant price impact. This constrained liquidity environment often exacerbates price swings during periods of heightened selling pressure.

Investor Sentiment and Sector Context

The NBFC sector has experienced mixed fortunes in recent months, with some companies facing headwinds from tightening credit conditions and regulatory scrutiny. Viji Finance’s recent price action reflects a combination of sectoral pressures and company-specific concerns. The stock’s sharp decline and lower circuit hit suggest panic selling, possibly driven by fears over the company’s near-term prospects and financial health.

Investor participation has notably diminished, as evidenced by the steep fall in delivery volumes. This trend points to a cautious stance among shareholders, with many opting to exit positions amid uncertainty. The unfilled supply of shares at lower price levels indicates that sellers are eager to liquidate holdings, but buyers remain hesitant to step in, further intensifying downward pressure.

Technical Indicators and Moving Averages

Technical analysis reveals that Viji Finance is trading below all major moving averages, a signal often interpreted as bearish by market participants. The 5-day, 20-day, 50-day, 100-day, and 200-day moving averages all lie above the current price, suggesting that the stock has been unable to sustain any upward momentum in recent weeks. This technical positioning may deter short-term traders from initiating new positions, contributing to the ongoing sell-off.

Such a pattern often reflects a lack of confidence in the stock’s immediate recovery potential, especially in a micro-cap environment where volatility can be amplified by lower liquidity and concentrated shareholding.

Implications for Investors

For investors holding Viji Finance shares, the recent price action underscores the importance of closely monitoring liquidity and market sentiment. The stock’s micro-cap status and limited trading volumes can lead to sharp price fluctuations, especially during periods of market stress. The persistent decline below key moving averages and the lower circuit hit may signal caution for those considering fresh exposure.

Potential buyers should weigh the risks associated with low liquidity and the current market environment before initiating positions. Conversely, existing shareholders may need to assess their risk tolerance and investment horizon in light of the ongoing volatility and subdued investor participation.

Outlook and Market Assessment

While Viji Finance’s recent trading pattern reflects significant selling pressure and a challenging market backdrop, it is essential to consider broader sector dynamics and company fundamentals in any investment decision. The NBFC sector continues to navigate regulatory and economic headwinds, which may influence individual stock performance.

Market participants are advised to stay informed about sector developments and company disclosures to better understand potential catalysts that could affect Viji Finance’s trajectory. The current market assessment suggests a cautious approach given the stock’s technical and liquidity constraints.

Summary

In summary, Viji Finance’s stock experienced a pronounced decline on 2 December 2025, hitting its lower circuit limit amid heavy selling pressure and reduced investor participation. The stock’s underperformance relative to its sector and the broader market, combined with its trading below all major moving averages, highlights a bearish technical outlook. Liquidity challenges and unfilled supply further compound the stock’s vulnerability to volatility. Investors should carefully evaluate these factors within the context of their portfolio strategy and risk appetite.

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