Vivimed Labs Ltd Plunges to Lower Circuit Amid Heavy Selling Pressure

Stock Performance and Market Context

On 4 Feb 2026, Vivimed Labs Ltd (Stock ID: 612893) closed at ₹7.97, down ₹0.41 or 4.89% from the previous close. This decline triggered the lower circuit filter, capping further losses for the day. The stock’s price band was set at 5%, and it reached the lower limit precisely, indicating a day dominated by panic selling and unfilled supply.

The total traded volume stood at 1.02636 lakh shares, with a turnover of ₹0.0818 crore, signalling moderate liquidity for a micro-cap stock. Despite this, the delivery volume on 3 Feb was only 2.5 lakh shares, a steep 70.24% drop compared to the five-day average delivery volume, highlighting falling investor participation and a lack of conviction among buyers.

Vivimed Labs underperformed its sector by 5.01% on the day, while the broader Sensex and sector indices posted modest gains of 0.23% and 0.30% respectively. This divergence underscores the stock-specific weakness amid a relatively stable market environment.

Technical Weakness and Moving Averages

The stock has been on a downward trajectory for three consecutive sessions, cumulatively losing 14.12% over this period. It is currently trading below all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling a sustained bearish trend. Such technical positioning often deters fresh buying interest and exacerbates selling pressure.

Investors should note that the stock’s micro-cap status, with a market capitalisation of approximately ₹70 crore, adds to its volatility and susceptibility to sharp price swings on relatively low volumes.

Investor Sentiment and Market Reaction

The sharp fall and circuit hit reflect a wave of panic selling, likely triggered by a combination of disappointing fundamentals and negative market sentiment. The stock’s Mojo Score currently stands at 31.0, with a Mojo Grade of Sell, downgraded from Strong Sell on 1 Feb 2026. This downgrade signals a deteriorating outlook from the analytical perspective, reinforcing the cautionary stance among investors.

Such a downgrade often leads to increased selling pressure as institutional and retail investors reassess their positions. The stock’s micro-cap nature means that even modest volumes can cause outsized price movements, which is evident in the current scenario.

Moreover, the unfilled supply at the lower circuit suggests that sellers overwhelmed buyers, with demand unable to absorb the available shares at prices above ₹7.97. This imbalance further cements the bearish momentum and raises questions about near-term recovery prospects.

Fundamental Considerations

Vivimed Labs operates in the Pharmaceuticals & Drugs industry, a sector that has seen mixed performance amid evolving regulatory and market dynamics. While the broader sector has shown resilience, Vivimed’s micro-cap status and recent price action indicate company-specific challenges that investors need to carefully evaluate.

With a market cap grade of 4, the stock is categorised as a micro-cap, which typically entails higher risk and lower liquidity compared to larger peers. Investors should weigh these factors alongside the company’s financial health, earnings trajectory, and sector outlook before making investment decisions.

Outlook and Investor Guidance

Given the current technical weakness, negative sentiment, and downgrade in Mojo Grade, investors should exercise caution with Vivimed Labs Ltd. The stock’s persistent decline and lower circuit hit suggest that near-term recovery may be limited without a significant positive catalyst.

Market participants are advised to monitor volume trends and price action closely. A sustained increase in delivery volumes and a break above key moving averages would be necessary to signal a potential turnaround. Until then, the stock remains vulnerable to further downside risks.

For risk-averse investors, exploring alternative micro-cap or small-cap stocks with stronger fundamentals and more favourable technical setups may be prudent. The pharmaceutical sector offers a range of opportunities, but selective stock picking is essential to mitigate volatility and capital loss.

Summary

Vivimed Labs Ltd’s plunge to the lower circuit price of ₹7.97 on 4 Feb 2026 highlights severe selling pressure and waning investor confidence. The stock’s 4.89% daily loss capped by the circuit breaker, combined with a three-day consecutive decline of over 14%, underscores a challenging environment for shareholders.

With a downgraded Mojo Grade of Sell and falling delivery volumes, the stock faces significant headwinds. Investors should remain cautious and consider the broader market context, liquidity constraints, and fundamental outlook before committing fresh capital.

Continued monitoring of trading volumes, price momentum, and sector developments will be critical to assess any potential recovery or further deterioration in the stock’s performance.

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