Cupid share price crashes 20% for 2nd day after being placed under ASM framework — Time to steer clear?

Cupid share price: Small-cap multibagger stock Cupid Limited crashed another 20% on Monday, January 5, extending its selling streak to the second day in a row. The stock had closed at the 20% lower price band on Friday, taking its two-day fall to 35%.

Cupid shares hit the day's low of ₹337.55 on the BSE today, falling 19.6% from its last closing price of ₹419.95 and a whisker away from the 20% lower price band of ₹336.

The selling pressure in the small-cap stock, which began on Friday, was after the stock exchanges BSE and NSE placed Cupid under the Long-term Additional Surveillance Measure Stage 1 framework, according to multiple media reports. Mint, however, could not independently verify this.

A Moneycontrol report said that the applicable rate of margin shall be 100% w.e.f. January 06, 2026, on all open positions as on January 05, 2026, and new positions created from January 06, 2026, onwards.

Stocks are added to ASM frameworks as a caution against heightened volatility in share prices and to enhance market surveillance.

Commenting on the unusual trade volume in Cupid shares, the company last week told exchanges that it is not aware of any undisclosed material event or development that would warrant such volatility.

“All Stakeholders are advised to rely only on information disseminated through official stock exchange filings and authorised communications. It has come to our attention that certain false and unverified rumours are being circulated with the apparent intent to create panic and tarnish the reputation of the company and its promoters. The company is reviewing the same and will take appropriate steps as may be required. The promoters remain fully committed to the Company's long-term value creation and to protecting the interests of all stakeholders,” Cupid had said in a filing dated January 2.

Additionally, trading volumes on the counter remained higher than usual as 38.89 lakh shares of Cupid changed hands on BSE as of 11 am, as against the two-week average of 10.55 lakh shares.

Cupid Q3 update

Cupid, on Friday evening, also shared its business update for the second quarter of the financial year 2025-26, wherein it signalled that the October-December quarter could be its best-performing quarter to date, driven by continued demand strength and smooth operational execution.

Cupid told exchanges that its order book stands at its highest level so far, providing clear visibility for performance in the coming quarters. The management remains confident of exceeding its earlier FY26 guidance of ₹335 crore in revenue and ₹100 crore in PAT, supported by operating efficiencies, stable demand, and execution progress.

The small-cap company said that work at the Palava, Maharashtra, manufacturing facility continues as scheduled, while its FMCG portfolio continues to see growing demand across India, supported by expanding retail presence in the personal care and wellness categories.

Cupid shares: Technical view

The steep fall in Cupid's stock came after 13 sessions of relentless buying between December 15 and January 1. That's not all, the stock in the last year has surged a whopping 375%, emerging as one of the best-performing small-caps in a tough year for the segment.

Commenting on the technical outlook for Cupid Limited, Harshal Dasani, Business Head at INVAsset PMS, said that from a pure technical standpoint, Cupid has transitioned from a momentum-led uptrend into a corrective phase with clear signs of trend fatigue.

"On the weekly chart, price has decisively broken its multi-month rising trendline, which had acted as dynamic support throughout the rally. This breakdown is accompanied by a clear surge in volumes, confirming distribution rather than a low-volume retracement. The stock has also slipped below its 20-week moving average and is now gravitating toward the 40-week zone, a key medium-term trend gauge. Momentum has cooled sharply, with RSI unwinding from extreme overbought levels near 80 toward the 55–60 band, signalling loss of bullish strength. Importantly, the recent candle structure shows long upper wicks, reflecting supply dominance at higher levels," he added.

Unless the stock reclaims its broken trendline with declining sell volumes and RSI stabilises above 60, the setup points to either a deeper retracement toward major demand zones or a prolonged time-wise consolidation, Dasani cautioned.

Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.