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

Stock Performance and Market Context

On 6 Jan 2026, Vivimed Labs (Stock ID: 612893) opened sharply lower at Rs 12.25, immediately triggering the lower circuit limit of 10% for the day. The stock remained locked at this price throughout the session, with no upward movement, indicating a complete absence of buying interest to absorb the heavy supply. The total traded volume was 0.24526 lakh shares, translating to a turnover of just ₹0.03 crore, highlighting subdued liquidity amid the sell-off.

This decline starkly contrasts with the broader market and sector trends. While the Sensex slipped marginally by 0.20% and the pharmaceutical sector gained 0.41%, Vivimed Labs underperformed its sector by a significant margin of 10.36%. The stock’s performance over the past ten consecutive trading days has been dismal, with a cumulative loss of 48.98%, signalling sustained bearish sentiment.

Technical and Volume Analysis

Despite the recent downtrend, Vivimed Labs’ price remains above its 20-day, 50-day, 100-day, and 200-day moving averages, but below the 5-day moving average, suggesting short-term weakness amid longer-term support levels. However, the persistent fall and the circuit lock indicate that short-term technical support is being overwhelmed by selling pressure.

Investor participation has notably increased, with delivery volume on 5 Jan 2026 surging by 543.8% compared to the five-day average, reaching 39,910 shares. This spike in delivery volume ahead of the circuit hit suggests that investors have been offloading shares aggressively, possibly in response to negative news flow or deteriorating fundamentals.

Market Capitalisation and Valuation

Vivimed Labs is classified as a micro-cap stock with a market capitalisation of approximately ₹113 crore. The small market cap combined with low liquidity can exacerbate price volatility, especially when faced with concentrated selling. The stock’s current valuation and market sentiment have led to a downgrade in its Mojo Grade to a “Strong Sell” with a Mojo Score of 24.0 as of 22 Dec 2025, reflecting a deteriorated outlook from its previous ungraded status.

Investor Sentiment and Panic Selling

The locking of the stock at its lower circuit price limit is a clear indicator of panic selling and a lack of buyers willing to step in at current levels. Such a scenario often reflects deep concerns about the company’s near-term prospects or broader market fears impacting micro-cap stocks disproportionately.

Given the stock’s 10-day losing streak and nearly 50% erosion in value, investor confidence appears severely shaken. The absence of any price range movement during the day further emphasises the dominance of sellers and the inability of demand to stabilise the price.

Comparative Sector and Market Analysis

While the pharmaceutical sector has shown resilience with a modest gain of 0.41% on the day, Vivimed Labs’ sharp underperformance highlights company-specific challenges. The broader market’s mild decline of 0.20% on the Sensex suggests that the stock’s fall is not driven by systemic factors but rather by internal issues or negative sentiment unique to Vivimed Labs.

Investors should note that micro-cap stocks like Vivimed Labs are often more vulnerable to volatility and liquidity shocks, which can lead to exaggerated price movements compared to larger, more liquid peers.

Outlook and Investor Considerations

With the stock locked at its lower circuit for the second consecutive session and a strong “Strong Sell” rating from MarketsMOJO, investors should exercise caution. The persistent downtrend and lack of buying interest suggest that the stock may continue to face downward pressure unless there is a significant change in fundamentals or market sentiment.

Potential investors should carefully analyse the company’s financial health, sector dynamics, and recent developments before considering any exposure. The micro-cap nature of Vivimed Labs means that price swings can be abrupt and severe, making risk management paramount.

Meanwhile, existing shareholders may want to reassess their positions in light of the deteriorating technical and fundamental indicators, as well as the heightened volatility and liquidity constraints.

Summary

Vivimed Labs’ plunge to a new 52-week low of Rs 12.25, coupled with a 9.99% drop and locking at the lower circuit, underscores the intense selling pressure and panic among investors. The stock’s underperformance relative to its sector and the broader market, combined with a “Strong Sell” Mojo Grade, paints a challenging picture for the company’s near-term prospects. Increased delivery volumes and a prolonged losing streak further highlight the bearish sentiment dominating the stock. Investors should approach with caution and consider alternative opportunities within the pharmaceutical sector and beyond.

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