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

Stock Performance and Market Context

On the trading day, Vivimed Labs opened sharply lower at ₹15.12, reflecting a gap down of 9.95% from its previous close. The stock remained locked at this price throughout the session, unable to recover or trade within a range, signalling a complete absorption of available bids at the lower circuit. This price represents a new 52-week low for the micro-cap pharmaceutical company, whose market capitalisation currently stands at ₹139 crore.

The stock’s performance starkly contrasts with the broader market, with the Sensex gaining 0.32% and the sector remaining flat. Vivimed Labs underperformed its sector by nearly 9.84% on the day, underscoring the severity of the sell-off. This decline extends a losing streak that has now lasted eight consecutive trading days, during which the stock has shed 37.03% of its value, reflecting sustained negative sentiment.

Heavy Selling Pressure and Unfilled Supply

The trading volume for Vivimed Labs was notably low, with only 0.00972 lakh shares changing hands, translating to a turnover of ₹0.00147 crore. Such thin liquidity exacerbates price volatility, as even modest selling interest can overwhelm available bids. The stock’s price band of 10% was fully utilised on the downside, indicating maximum permissible loss for the day under exchange regulations.

Investor participation, however, has shown signs of rising delivery volumes, with 5,460 shares delivered on 1 Jan 2026, a 14.58% increase over the five-day average. This suggests that while trading volumes are low, a growing number of investors are settling trades, possibly reflecting panic selling or forced exits by shareholders unwilling to hold through the decline.

Technical and Moving Average Analysis

Interestingly, the stock’s last traded price remains above its 20-day, 50-day, 100-day, and 200-day moving averages, yet it trades below the 5-day moving average. This divergence indicates a recent sharp correction that has pulled the price below short-term averages, while longer-term averages have yet to adjust fully. Such a pattern often signals a sudden shift in market sentiment, with short-term traders reacting more aggressively to negative news or market dynamics.

Mojo Score and Analyst Ratings

Vivimed Labs currently holds a Mojo Score of 24.0, categorised as a Strong Sell by MarketsMOJO, reflecting deteriorated fundamentals and weak price momentum. This rating was assigned on 22 Dec 2025, marking a downgrade from a previously ungraded status. The micro-cap’s market cap grade is 4, indicating limited market capitalisation and liquidity, which can amplify price swings and investor risk.

Investor Sentiment and Panic Selling Dynamics

The persistent decline and the stock’s inability to trade above the lower circuit price have created a feedback loop of panic selling. Investors, wary of further losses, are rushing to exit positions, but the lack of buyers at these levels has resulted in unfilled supply. This imbalance between sellers and buyers has intensified downward pressure, pushing the stock to its daily permissible limit.

Such episodes often reflect deeper concerns about the company’s fundamentals or sector outlook. In Vivimed Labs’ case, the pharmaceutical and drugs industry has faced mixed sentiments recently, with regulatory challenges and competitive pressures impacting valuations. The micro-cap status further compounds risks, as smaller companies tend to be more vulnerable to market shocks and liquidity constraints.

Comparative Sector and Market Analysis

While Vivimed Labs has suffered a near 10% loss in a single session, the pharmaceutical sector remained flat, and the broader market indices showed modest gains. This divergence highlights company-specific issues rather than sector-wide weakness. Investors should note that such sharp underperformance relative to peers often signals deteriorating fundamentals or adverse news flow specific to the company.

Moreover, the stock’s consecutive eight-day fall and cumulative 37% loss over this period are significant outliers compared to sector averages. This trend warrants caution for investors considering exposure to Vivimed Labs, as the risk of further downside remains elevated until signs of stabilisation or recovery emerge.

Outlook and Investor Considerations

Given the current market dynamics, investors should approach Vivimed Labs with caution. The strong sell rating and low Mojo Score reflect underlying weaknesses that have yet to be addressed. The stock’s micro-cap status and limited liquidity increase the risk of volatile price movements and potential difficulty in exiting positions.

Potential investors are advised to monitor key technical levels and fundamental developments closely. Any positive catalyst, such as improved earnings, regulatory clarity, or sector tailwinds, could help stabilise the stock. Conversely, continued selling pressure and lack of buyer interest may prolong the downtrend.

For existing shareholders, risk management strategies including stop-loss orders or portfolio rebalancing may be prudent to mitigate further losses. Diversification into stocks with stronger fundamentals and better liquidity could enhance portfolio resilience.

Summary

Vivimed Labs’ plunge to its lower circuit price limit on 2 Jan 2026 underscores the intense selling pressure and panic among investors. The stock’s 9.95% daily loss, new 52-week low, and eight-day consecutive decline highlight significant challenges facing the company. With a Strong Sell Mojo Grade and micro-cap constraints, the stock remains vulnerable to further downside amid unfilled supply and weak investor confidence.

Market participants should weigh these risks carefully against potential rewards and consider alternative investment opportunities within the pharmaceutical sector and broader market.

Only Rs. 9,999 - Get MojoOne + Stock of the Week for 1 Year (MRP = Rs. 34,999) Start Today