What does Upper Circuit mean in Stock Markets?- ICICI Direct (2024)

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What does Upper Circuit mean in Stock Markets?- ICICI Direct (2024)

FAQs

What does Upper Circuit mean in Stock Markets?- ICICI Direct? ›

An upper circuit in the stock market is the maximum level or price to which a stock can move in a day. Once a stock touches its upper circuit, it means there are only buyers available and no sellers are present.

Is it good to buy upper circuit share? ›

For example, if a stock is trading close to its upper circuit, it may not be a good time to buy that stock, as the chances of a price correction are higher. Similarly, if a stock is trading close to its lower circuit, it may not be a good time to sell that stock, as the chances of a price rebound are higher.

What happens if I sell a stock for intraday but it hits the upper circuit? ›

When a stock hits Upper Circuit. There are only buyers (BID) and no sellers (ASK) in the market. Hence if you have an open Sell MIS / CO position, and the stock hits the upper circuit at the time of square-off, the buy order will not get executed since there are no sellers in the market.

How do you trade in upper circuit? ›

How Does Trading in the Upper Circuit Stocks Work? Trading in share with the upper circuit in NSE works differently from other stocks. The exchange sets the limit and varies from stock to stock. Once a stock with upper circuit hits its upper circuit limit, trading in that stock is suspended for a certain period.

How can I buy upper circuit shares in ICICIdirect? ›

But fear not, intrepid investor, ICICIdirect offers a nifty tool called an AMO (After Market Order). Setting Up Your AMO: Select the stock, enter the number of shares you want to buy, and crucially, set the price to the upper circuit limit.

How long can a stock stay in upper circuit? ›

Upper Circuit Time
10 % rise or fall15 % rise or fall
Before 1 pm- halt for 45 minutesBefore 1 pm- halt for 1 hour 45 minutes
1 pm- 2:30 pm- halt for 15 minutes1 pm-2:30 pm- halt for 45 minutes
After 2:30 pm - No haltAfter 2:30 pm- for the rest of the day
1 more row

Can I sell my stock at Upper Circuit? ›

Yes, you can sell shares at the upper circuit limit if you have already bought the shares before the circuit hits. However, it is important to note that selling at the upper circuit limit may not always be the best decision.

Can a stock fall after hitting upper circuit? ›

A circuit limit or a circuit breaker is defined as the limit either upper or lower, a stock could rise or fall, before the trading of the stock is halted depending upon the time at which the stock hits the circuit.

Can a stock go beyond upper circuit? ›

So now when the stock hits the upper circuit, the price point of that stock cannot move above that point i.e. it has reached its maximum level for that particular trading session.

Can we buy and sell in upper circuit? ›

Circuit filters are determined exclusively by SEBI. Only buying activity occurs When a stock reaches its upper circuit, and no selling transactions occur. Similarly, only selling happens when a stock hits its lower circuit, with no buying transactions happening.

Which stocks have upper circuit? ›

Daily Upper Circuit
S.No.NameROCE %
1.Addictive Learn552.49
2.KP Green Engg.103.93
3.Waaree Renewab.83.80
4.Franklin Indust.70.73
23 more rows

How many upper circuit works are there in stock market? ›

For Nifty 50, on the other hand, the three upper circuit limits are 10%, 15%, and 20%. The upper circuit limit for individual stocks is determined based on factors like market capitalisation and trading volume. For instance, the upper circuit limit for large-cap, mid-cap, and small-cap stocks is different.

How do I sell intraday shares in upper circuit? ›

Possible scenarios include: For an open Intraday sell position hitting the upper circuit: No sellers are present, only buyers. You won't be able to buy back, converting the position to delivery for auction settlement. A 120% margin of the closing price is then blocked.

What happens when upper circuit is hit? ›

If there is an open sell intraday position, the stock hits the upper circuit limit. When a stock hits the upper circuit price, there are only buyers in the market, and no sellers are available. This means that it becomes difficult to repurchase the stock that was initially sold for intraday trading.

Who decides upper circuit and lower circuit? ›

Upper circuits refer to the higher demand for shares than supply, whereas lower circuits refer to a higher supply of shares than demand. In India, SEBI is the sole decider of circuit filters. There are only buyers and no sellers when a stock hits its upper circuit.

Do upper circuits change? ›

The upper circuit is the maximum possible price that the stock can trade on that particular day. The upper circuit does not remain for the entire day, there are specific percentages defined, when the stock hits these limits, according to that trading is halted for a specific duration.

When to sell upper circuit stocks? ›

Can I sell a stock in upper circuit? When a stock's price is at its upper circuit, there are many buyers and no sellers. If you want to sell, you can as there will be an abundance of buyers at the upper circuit.

Which stock is hitting upper circuit everyday? ›

Daily Upper Circuit
S.No.NameNP Qtr Rs.Cr.
1.Addictive Learn
2.Reliance Home-2.56
3.KP Green Engg.24.20
4.Waaree Renewab.64.46
23 more rows

Why is upper circuit different for different stocks? ›

The upper circuit limit for individual stocks is determined based on factors like market capitalisation and trading volume. For instance, the upper circuit limit for large-cap, mid-cap, and small-cap stocks is different.

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