Cupid Ltd shares saw a sharp fall of 20 percent, hitting the lower circuit and ending a strong 13-day winning streak. The fall came after heavy profit booking by investors and the stock being placed under the Additional Surveillance Measure (ASM) framework by stock exchanges.
The stock had been on a remarkable run, gaining more than 450–550 percent over the past one year, making it one of the best-performing small-cap stocks. In the previous session, Cupid shares touched a 52-week high of around Rs 527. However, the sharp rise also raised concerns about high valuations and excessive speculation.
On the day of the fall, Cupid shares dropped to around Rs 419–420 on the NSE. Trading volumes were unusually high, showing strong selling pressure as many investors chose to book profits after the steep rally.
A key reason behind the sudden decline was the decision by the NSE and BSE to place Cupid under Long-term ASM Stage 1. Under this framework, traders will have to pay 100 percent margin on trades from January 6, 2026. This means no leverage will be allowed, which often reduces short-term trading interest and liquidity in the stock. The ASM framework is meant to protect investors and control extreme price movements.
Market experts said the correction was expected after such a sharp rise in a short period. Technical indicators also suggest near-term weakness, with the stock slipping below important short-term averages. Analysts believe the stock may find support around Rs 370, while any recovery could face resistance near Rs 440–445.
Despite the sharp fall, some analysts remain positive on the company’s long-term fundamentals. Cupid has shown steady business growth, improved financial performance and expansion plans, which supported the stock’s strong rally over the past year. However, experts caution that volatility may continue in the short term due to regulatory restrictions and profit booking.
Overall, the sharp fall in Cupid shares highlights the risks involved in high-momentum small-cap stocks. While the long-term story may remain intact, investors are advised to stay cautious until the stock shows signs of stability.