Vivimed Labs Hits Lower Circuit Amid Heavy Selling Pressure and Panic Selling

Intraday Trading and Price Movement

On the day in question, Vivimed Labs opened with a gap down, immediately reflecting a 5.0% drop from its previous close. The stock did not trade beyond the ₹21.67 mark throughout the session, indicating that it hit the maximum permissible daily loss limit, commonly referred to as the lower circuit. This price band of ₹5 capped the stock’s movement, preventing further decline during the trading day.

The intraday high and low were both recorded at ₹21.67, underscoring the absence of any upward price movement or recovery attempts. The stock’s inability to trade above this level highlights the severity of the selling pressure and the lack of buying interest at higher prices.

Volume and Liquidity Analysis

Trading volumes for Vivimed Labs on this day were notably thin, with a total traded volume of just 0.00067 lakh shares and a turnover of ₹0.000145 crore. Such low liquidity suggests that the stock was largely dominated by sellers, with very few buyers willing to absorb the available supply. This imbalance contributed to the stock hitting its lower circuit and remaining there throughout the session.

Further emphasising the decline in investor participation, the delivery volume on 23 Dec 2025 was recorded at 1,500 shares, which represents a steep fall of 91.82% compared to the five-day average delivery volume. This sharp reduction in delivery volumes indicates that investors were reluctant to hold the stock, opting instead for quick exits amid the prevailing market sentiment.

Recent Price Trends and Market Context

Vivimed Labs has been on a downward trajectory for the past two trading sessions, cumulatively losing 9.75% over this period. This consecutive fall reflects sustained negative sentiment surrounding the stock. The stock’s performance on 24 Dec 2025 notably underperformed its sector, which recorded a marginal decline of 0.10%, and the broader Sensex index, which posted a slight gain of 0.12% on the same day.

Despite the recent price weakness, Vivimed Labs continues to trade above its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages. This technical detail suggests that the stock’s longer-term trend remains intact, although the immediate market conditions have triggered a sharp correction.

Market Capitalisation and Industry Position

Vivimed Labs is classified as a micro-cap company with a market capitalisation of approximately ₹179.67 crore. Operating within the Pharmaceuticals & Drugs industry, the company’s stock is subject to the volatility often associated with smaller capitalisation stocks, which can experience sharper price swings due to lower liquidity and concentrated investor interest.

The stock’s recent trading behaviour, including erratic sessions and a day without any trades in the last 20 days, further highlights the challenges faced by investors in this segment. Such irregular trading patterns can exacerbate price volatility and contribute to episodes of panic selling.

Investor Sentiment and Supply-Demand Dynamics

The sharp fall and lower circuit hit on 24 Dec 2025 reflect a scenario where selling pressure overwhelmed buying interest. The unfilled supply at the lower circuit price indicates that sellers were willing to offload shares at the lowest permissible price, but buyers were scarce or unwilling to engage at that level. This imbalance often signals panic selling, where investors rush to exit positions amid uncertainty or negative news flow.

Such episodes can lead to temporary price distortions, but they also provide a critical juncture for investors to reassess the stock’s fundamentals and market outlook. The stock’s performance relative to its sector and benchmark indices suggests that the weakness is specific to Vivimed Labs rather than a broad market trend.

Outlook and Considerations for Investors

While the immediate trading session was marked by significant losses and a lower circuit hit, investors should consider the broader context before making decisions. The stock’s position above key moving averages suggests underlying support in the medium to long term. However, the recent decline and reduced delivery volumes indicate caution among market participants.

Investors may wish to monitor upcoming corporate developments, sectoral trends, and overall market conditions that could influence Vivimed Labs’ stock performance. Given the micro-cap status and the inherent volatility, a careful evaluation of risk tolerance and investment horizon is advisable.

In summary, Vivimed Labs’ trading on 24 Dec 2025 was characterised by heavy selling pressure, panic selling, and an unfilled supply at the lower circuit price limit of ₹21.67. This event underscores the challenges faced by smaller stocks in maintaining liquidity and investor confidence during periods of market stress.

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