Upper and lower circuit - Going short then stock goes in lower circuit

Stocks
1

lets say,
i placed an order for sell. I’m going short on reliance , selling 100 stocks at 1000 rs,
it goes down as expected,
i booked partial profit by selling 50 stocks.
I’m still short on 50 and I’m watching it drop. Suddenly it dropped to 850, hitting lower circuit.
I placed MIS order. What happens now. Will i be able to square off? will be able to buy it back around 850 to book profit on remaining 50 stocks?

2

???

First of all, Reliance doesnt have a circuit limit

Secondly , you can buy at LC but not at UC, so your worry should be if a stock u shorted hits UC

3

lets say xyz stock,
i bought 100 stocks of xyz stock at 1000 rs, then booked profit on 50 stocks and then i’m just trailing and suddenly it hits UC, what happens now?
will i be able to sell xyz’s 50 stocks?

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4

If it hits UC u cannot buy back intraday

So it goes into auction and u pay extra penalties (not sure of details)

Though Zerodha mostly blocks intraday on such stocks u can try i think wont be allowed

5

practically there will be buyers when a stock hits UC and sellers when a stock hits LC

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6

I have a personal experience where I short 500 stock of swan energy 2 year back and it hit 20%uc in min after my order get triggered. So I was so worry of getting auction penalty but at the closing time my position get covered at market price I don’t now how but I think there are some buyers may be MIS also which get auto squared at 1520 and I got those qty which by good luck. So I think some time in LC also there may be same MIS orders which got auto squared and some lucky fellow covered it.
2) there is not much problem if u buy and stock hit LC just convert position MIS and now it is brokers headache to cover it for you if not same day then next day morning in preopen… :smile: