Sometimes share hit circuit at 5%, 10%, 20% etc. And then sometimes the circuit don’t break for whole day and sometimes it does. I would like to know, when does it break or do not break?
Before 2 days, I saw BHEL hit 10% circuit limit, but then circuit broke and new circuit was set at 15%.
What are the rules for circuit break or circuit limit updates during the day in NSE?
Taking your example of BHEL, this stock have derivative contracts (F&O) on it.
Stocks which trade in F&O segment do not have Circuit Limit’s.
There are Price Bands to ensure trading is done within the specified range to prevent erroneous order entry, as and when price approaches this levels the limits are relaxed further.
For the stocks which don’t trade in F&O segment, Circuit Limit’s vary from 2%, 5% and 10%. If these stocks hit the limits, the Circuits aren’t relaxed further as is the case with stocks trading in F&O segment.
You can refer to this section on NSE website to know more.
Hello sir,
Today (10 Jun 21), Indiabulls housing finance hit 10% upper circuit. It is in F&O. Why did this share hit circuit?
Sorry, the circuit broke after 15 minutes.
@ShubhS9 Sir, I need to confirm this.
I shorted “LTTS” today (in cash not future). If it hit 20% circuit, it will break after 15 minutes right? And the stock can also go above 20% right?
Here is mentions, If a stock hit 20%, circuit wont break for rest of the day. I am scared of short delivery plenty, if it hits circuit and do not break.
https://www1.nseindia.com/products/content/equities/equities/circuit_breakers.htm
This is for Indices (Nifty and Sensex) not for stocks. As explained above:
Stocks which trade in F&O segment do not have Circuit Limit’s.
There are Price Bands to ensure trading is done within the specified range to prevent erroneous order entry, as and when price approaches this levels the limits are relaxed further.
Ohhh, so can this scene happen:
Reliance, HDFC, TCS etc are up by 40% but Nifty is up by only 20% because of circuit limit in Index?
Seems weird, so just asking for this scenario. Sorry to bother you. Really appreciate it.
Might happen. Though as these are heavyweights in the Index and contribute to majority of the movement, for something like this to happen other stocks will have to perform badly.