Table of Contents
What is the limit of upper circuit?
The highest price a stock can reach on a particular day is the upper circuit limit. When this limit is touched, there will be only buyers and no sellers. Likewise, the lowest price that a stock can hit is the lower circuit limit and when a stock hits this limit, there will be only sellers and no buyers.
Is there circuit limit on listing day?
There are no circuit limits on the listing day, this is done to facilitate price discovery for the stock. In the Indian markets, upper circuits apply for stocks that are NOT traded in the derivatives section.
Can stock go above upper circuit?
When a stock moves sharply in either direction – whether up or down – or reaches its maximum permissible tradeable price level for a day, then it’s said to have hit the circuit. In case of an upward movement, it hits the Upper Circuit, whereas in case of a fall, the stock hits the Lower Circuit.
Can I sell stock at upper circuit?
In upper circuit sellers can sell , only restriction is on buying . Many stocks reopen for regular trading after hitting upper circuit because of the same rule . Like above you can buy in lower circuit but can’t sell .
What is the upper circuit limit of a stock?
Upper Circuit: It is an Maximum Range in which a Stock Can Move on a Daily Basis. For Example: Suppose, If Stock has an Circuit Limit (Upper) Of 20\% on daily basis means, The Stock Can Move a Maximum of 20 Percentage in the Upside. Let us Assume, If the Stock Closes at Rs 1000 On Previous Day. Then Upside 20\% Of 1000 becomes 1200.
What is the circuit limit?
Circuit limit is of two types. One is for the index and the other is for individual stocks. Since your question is about individual stocks, will cover the same. Circuit limit/ daily price bands are nothing but the high and low limits within which the stock orders can be placed for the day.
What is the upper circuit of the intraday limit of Rs 120?
It can move upward by a maximum of 20\% in a single trading day. So, Rs. 120 is the upper circuit for it.
What are the rules for circuit breaking in stock markets?
The rules for circuit breaking are decided by the Securities exchange Board. For example if the regulators decide that the circuit limit for a stock is 15\%, then, trading in that stock will be halted for the day, if the stock price moves up or down 15\% in one day.
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