Vivimed Labs Hits Lower Circuit Amid Intense Selling Pressure

Stock Performance and Market Context

On the trading day, Vivimed Labs (Stock ID: 612893) recorded a price drop of ₹0.61, closing at ₹11.64, which was also the day's high and low, indicating the activation of the lower circuit filter. The stock's percentage decline of 4.98% significantly underperformed its sector, which gained 0.64%, and the broader Sensex, which marginally declined by 0.12%. This stark underperformance highlights the stock-specific challenges faced by Vivimed Labs amid a relatively stable market environment.

The total traded volume was 0.14273 lakh shares, with a turnover of ₹0.0166 crore, reflecting subdued liquidity on the day. Despite this, the stock remains liquid enough for trades up to ₹0.02 crore based on 2% of its five-day average traded value, suggesting that the current selling pressure is concentrated rather than broad-based.

Extended Downtrend and Investor Sentiment

Vivimed Labs has been on a steep downward trajectory, losing value for 11 consecutive trading sessions. Over this period, the stock has plummeted by 51.52%, signalling a severe erosion of investor confidence. The persistent decline has been accompanied by rising investor participation, as evidenced by a dramatic surge in delivery volume to 22.81 lakh shares on 6 Jan 2026 — a staggering increase of 17,746.61% compared to the five-day average delivery volume. This spike suggests that while some investors are offloading shares in panic, others may be accumulating at lower levels, anticipating a potential turnaround.

Technical Indicators and Moving Averages

From a technical perspective, Vivimed Labs' last traded price remains above its 50-day, 100-day, and 200-day moving averages, indicating that the longer-term trend has not yet fully deteriorated. However, the stock is trading below its 5-day and 20-day moving averages, reflecting short-term weakness and bearish momentum. This divergence between short- and long-term averages often signals heightened volatility and uncertainty among traders.

Market Capitalisation and Sector Overview

Vivimed Labs operates within the Pharmaceuticals & Drugs industry and is classified as a micro-cap stock with a market capitalisation of approximately ₹101 crore. Micro-cap stocks are often more susceptible to volatility and liquidity constraints, which can exacerbate price swings during periods of negative sentiment.

Compared to its sector peers, Vivimed Labs has notably underperformed, with the sector showing resilience and modest gains on the day. This divergence underscores company-specific issues rather than broader sectoral weakness.

Mojo Score and Analyst Ratings

MarketsMOJO has assigned Vivimed Labs a Mojo Score of 24.0, categorising it with a Strong Sell grade as of 22 Dec 2025. This rating reflects deteriorated fundamentals and technical outlook, signalling caution to investors. The downgrade from a previously ungraded status indicates a significant reassessment of the company’s prospects by analysts, likely influenced by recent financial performance and market behaviour.

Supply-Demand Imbalance and Circuit Breaker Activation

The activation of the lower circuit price band at 5% is a clear indication of unfilled supply overwhelming demand. The stock’s inability to trade above ₹11.64 throughout the session highlights the intensity of selling pressure and the reluctance of buyers to step in at current levels. Such circuit limits are designed to prevent excessive volatility, but their triggering often reflects panic selling and a lack of confidence among market participants.

Investor Implications and Outlook

For investors, the current scenario presents a challenging environment. The prolonged downtrend, coupled with a strong sell rating and technical weakness, suggests that caution is warranted. However, the surge in delivery volumes may hint at some bargain hunting or accumulation by contrarian investors expecting a recovery. Given the micro-cap status and sector dynamics, volatility is likely to persist in the near term.

Conclusion

Vivimed Labs’ plunge to its lower circuit limit on 7 Jan 2026 underscores the severe selling pressure and negative sentiment surrounding the stock. The maximum daily loss of nearly 5% and the unfilled supply indicate a market grappling with uncertainty and risk aversion towards this micro-cap pharmaceutical player. While the longer-term moving averages suggest some residual support, the short-term technicals and fundamental outlook remain weak, as reflected in the Strong Sell Mojo Grade.

Investors should closely monitor upcoming corporate developments, sector trends, and broader market conditions before considering exposure to Vivimed Labs. Meanwhile, the stock’s current trajectory serves as a cautionary tale of the risks inherent in micro-cap investing, especially amid volatile market phases.

Unlock special upgrade rates for a limited period. Start Saving Now →