Why is Vivid Global Industries Ltd falling/rising?

Stock Performance Relative to Benchmarks

Vivid Global Industries Ltd has been under pressure over multiple time horizons. Over the past week, the stock declined by 5.94%, markedly worse than the Sensex’s modest 1.18% fall. This underperformance extends to the one-month period, where the stock dropped 2.97% compared to the Sensex’s 1.08% decline. Year-to-date figures also show the stock down 4.14%, while the Sensex has only fallen 1.22% in the same timeframe.

More concerning is the longer-term trend. Over the past year, Vivid Global Industries Ltd’s shares have plummeted by 19.61%, in stark contrast to the Sensex’s 7.72% gain. The three- and five-year returns further underline the stock’s struggles, with losses of 43.89% and 31.96% respectively, while the Sensex posted robust gains of 40.53% and 72.56% over the same periods. These figures suggest that the company has been facing sustained headwinds that have eroded investor confidence and market value.

Intraday Trading Dynamics and Volatility

On 08 Jan, Vivid Global Industries Ltd opened with a gap down of 2.82%, signalling immediate bearish sentiment among investors. The stock experienced a wide trading range of ₹1.62 during the day, touching an intraday low of ₹15.38, which represents a steep 9.53% drop from previous levels. This volatility was further underscored by an intraday volatility measure of 5%, indicating significant price fluctuations within the session.

Trading volumes also reveal a shift in investor behaviour. The weighted average price suggests that a larger volume of shares exchanged hands closer to the day’s low price, implying selling pressure dominated the session. Moreover, delivery volumes on 07 Jan plummeted by 97.21% compared to the five-day average, signalling a sharp decline in investor participation and possibly reduced conviction in the stock’s near-term prospects.

Technical Indicators and Market Sentiment

From a technical standpoint, Vivid Global Industries Ltd is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This consistent positioning below major moving averages typically reflects a bearish trend and may deter short-term traders and investors from entering or holding positions.

Liquidity remains adequate for trading, with the stock’s liquidity supporting reasonable trade sizes. However, the combination of falling prices, high volatility, and declining delivery volumes suggests that market participants are cautious, possibly awaiting clearer signals before committing capital.

Conclusion: Why the Stock is Falling

The decline in Vivid Global Industries Ltd’s share price on 08 Jan is attributable to a combination of factors. The stock’s persistent underperformance relative to the Sensex and its sector highlights structural challenges and weak investor sentiment. The gap down opening, coupled with high intraday volatility and a significant drop in delivery volumes, points to selling pressure and reduced market participation. Technical indicators reinforce the bearish outlook, with the stock trading below all major moving averages.

Investors should note that the stock’s long-term returns have been negative, contrasting sharply with the broader market’s gains, which may reflect company-specific issues or sectoral headwinds. While liquidity remains sufficient for trading, the prevailing market dynamics suggest caution for those considering new positions in Vivid Global Industries Ltd.

Get 2 full years of MojoOne Premium for only Rs. 12,999. Subscribe for 1 year and we'll add another year FREE. Offer valid for a limited time. Start Saving Now →