So I’m a bit not clear about the exact rules of upper/lower bands despite searching extensively on the internet. Which makes me ask it here
As far as I know, there’s a certain fixed upper/lower band for a particular stock which can be 2%/5%/10%/20%. However, if a stock is traded in futures and options i.e. it is listed on nse derivative list then it can go up/down by any percent.
Now let’s try to understand this from the movement of jet airways today
Its previous day closing price was 240. Now given that, jet airways had ± 10% circuit limit, the upper and lower bands for the stock were supposed to be 264 and 216 today.
Now the stock opened at 216 i.e. down by 10% and I guess the circuit filter was applied. However, since it is traded in futures and options, it could move further down, which it did, eventually
Now I have two questions.
The stock did start to go down further but not immediately after 9.15 rather from 9.30. Till 9.29, it was stuck at 216. So, how is this time decided ? Circuit filter is removed and band expands further after this constant 15 minutes everytime? Or this time can be different for different stocks ?
When the movement started at 9.30, by how much did the band move ? The stock was already down by 10%, so the band then moved directly to 30% or to 15% and then again to 20% once 15% was breached and so on ?
Thank you so much for reading this. Let me also know if you know some article or something where I can read about these latest rules in details
Yes that 9:30 pm thing is peculiar. Usually any stock which opens at 10% lower circuit starts falling at 9:15 am itself to lower prices. There is no stop timer like that. Maybe someone else can clarify this.
Usually it moves from 10% to 15% to 20% and so on. Like that.
Since the company was abandoned, there could have been no buyers at the beginning. For volatility, there should be buyers and sellers. In my opinion, the transaction begun at last at 09.30 am when maybe some scalpers or institution begun trading, maybe because their profit down the line was stuck till then. This is my thought. Please clarify with your thoughts.
For any stock to expand circuit limits it has to have at-least 10 trades at or near circuit price with different client ids, as this is in fno also and in ban, I believe to have those required trades it took sometime in fno.
Hey @siva . Thanks for replying. But how would any trade take place unless the band moves in the first place ? I myself tried to order(shorting) when the price was stuck at 216 but my order was rejected by zerodha saying order not within circuit limits
I may miss the whole thing, why exactly this company, I am feeling like I am from some other planet. I see topics about it arise all over the place. And somebody tells it’s abandoned now, is it all fine with it ? And how it’s going for everyone then ?