Hi, I was tracking ICICI bank and what i found is CMP is > than Upper circuit. What’s the reason of it?
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FNO stocks dont have circuit limits right?
F&O Stocks don’t have circuit limits, however, there is a dynamic price band of 10%.
The upper and lower price bands, for scrips on which derivative products are available or scrips included in indices on which derivative products are available, are on the basis of dynamic price band of 10%. In the event of a market trend in either direction, the dynamic price bands may be relaxed during the day in co-ordination with other Exchange. - NSE
It’s answered in the below link in detail.
Yes, since ICICI is a F&O stock it technically doesn’t have circuit limits. However, a dynamic price band of 10% will apply in the trend it is moving in. So if you refresh the NSE page you will see the limits have changed.
Quoting Karthik
This is because, the risk of the stock in the spot market can be hedged with its respective derivative contract in the F&O segment.
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Thanks buvanesh