How is there a volume for a stock when it hits circuit limits?

PAYTM hit lower circuit recently. I thought trading is blocked and there are no buyers at lower circuit. However, the volume indicator showed trades taking place at the lowest price possible.

How will a trade take place if there are no buyers?

Trading is not blocked in circuit, price is blocked.

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So what is the reason for it moving away from circuit price in the same day?

If PAYTM has lower circuit of 500, and is currently trading at 500, I’ve seen it trade at 505 in the same day.

This happens when someone places buy order at 505?

yes, someone filled all the sell orders upto 505.