{"id":12259,"date":"2025-04-17T17:23:48","date_gmt":"2025-04-17T11:53:48","guid":{"rendered":"https:\/\/lakshmishree.com\/blog\/?p=12259"},"modified":"2026-05-12T17:38:48","modified_gmt":"2026-05-12T12:08:48","slug":"upper-circuit-and-lower-circuit","status":"publish","type":"post","link":"https:\/\/lakshmishree.com\/blog\/upper-circuit-and-lower-circuit\/","title":{"rendered":"What is Upper Circuit and Lower Circuit in the Share Market\u200b"},"content":{"rendered":"\n<p>Have you ever noticed a stock suddenly stop moving\u2014either at its highest or lowest point of the day\u2014and wondered, <em>\"Why can't I buy or sell it anymore?\"<\/em> Well, that\u2019s where the <strong>upper circuit and lower circuit<\/strong> come into play. These are special limits set by the stock market to control wild price movements and protect both traders and investors from big losses or hasty decisions.<\/p>\n\n\n\n<p>In this blog, we\u2019ll break down everything you need to know about these circuits in the simplest way possible. Whether you\u2019re a new investor trying to make sense of stock market terms or just curious about how these price limits work\u2014don\u2019t worry, we\u2019ve got you. Let\u2019s dive in and uncover why these circuits matter, how they\u2019re triggered, and what you should do when you see a stock hit one.<\/p>\n\n\n\n<div class=\"wp-block-rank-math-toc-block\" id=\"rank-math-toc\"><h2>Table of Content <\/h2><nav><ul><li class=\"\"><a href=\"#what-is-circuit-in-stock-market\">What is Circuit in Stock Market?<\/a><\/li><li class=\"\"><a href=\"#upper-circuit-meaning-when-the-bulls-go-wild\">Upper Circuit Meaning \u2013 When the Bulls Go Wild<\/a><\/li><li class=\"\"><a href=\"#lower-circuit-meaning-when-panic-takes-over\">Lower Circuit Meaning \u2013 When Panic Takes Over<\/a><\/li><li class=\"\"><a href=\"#difference-between-upper-circuit-and-lower-circuit\">Difference Between Upper Circuit and Lower Circuit<\/a><\/li><li class=\"\"><a href=\"#how-are-circuit-limits-set-for-indices\">How Are Circuit Limits Set for Indices?<\/a><\/li><li class=\"\"><a href=\"#index-wide-circuit-breaker-timings-in-india\">Index-Wide Circuit Breaker Timings in India<\/a><\/li><li class=\"\"><a href=\"#why-do-stocks-hit-upper-or-lower-circuits\">Why Do Stocks Hit Upper or Lower Circuits?<\/a><\/li><li class=\"\"><a href=\"#what-happens-when-a-stock-hits-circuit\">What Happens When a Stock Hits Circuit?<\/a><\/li><li class=\"\"><a href=\"#risks-and-rewards-of-circuit-hit-stocks\">Risks and Rewards of Circuit-Hit Stocks<\/a><ul><\/ul><\/li><li class=\"\"><a href=\"#how-to-track-upper-or-lower-circuit-stocks-daily\">How to Track Upper or Lower Circuit Stocks Daily<\/a><\/li><li class=\"\"><a href=\"#conclusion\">Conclusion<\/a><\/li><li class=\"\"><a href=\"#fa-qs-on-upper-and-lower-circuit-in-stock-market\">Frequently Asked Questions<\/a><ul><li class=\"\"><a href=\"#faq-question-1744458725849\">Who decides upper circuit and lower circuit?<\/a><\/li><li class=\"\"><a href=\"#faq-question-1744458741345\">When does upper circuit change from 5 to 10?<\/a><\/li><li class=\"\"><a href=\"#faq-question-1744458754439\">What is lower circuit in share market?<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"what-is-circuit-in-stock-market\">What is Circuit in Stock Market?<\/h2>\n\n\n\n<p>In simple words, a <strong>circuit in stock market<\/strong> is like a safety switch that stops a stock or index from moving too much in a single day. Just like how a circuit breaker in your home cuts off electricity during overload, the <a href=\"https:\/\/lakshmishree.com\/blog\/history-of-indian-stock-market\/\" target=\"_blank\" data-type=\"link\" data-id=\"https:\/\/lakshmishree.com\/blog\/history-of-indian-stock-market\/\" rel=\"noreferrer noopener\">stock market<\/a> uses <strong>circuit breakers or circuit brackets<\/strong> to prevent extreme price changes. These are set limits that decide how high or how low a stock\u2019s price can go during a trading session.<\/p>\n\n\n\n<p>These limits are part of a system called <strong>circuit filters<\/strong>. If a stock hits this upper or lower boundary, trading in that stock is either paused or completely stopped for some time. This gives traders and investors time to cool down, avoid panic, and make better decisions. Circuit limits are important in keeping the market stable, especially during times of heavy buying or selling pressure. These are decided by the stock exchanges (like NSE or BSE) and are applied to individual stocks as well as market indices like Nifty and Sensex.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"upper-circuit-meaning-when-the-bulls-go-wild\">Upper Circuit Meaning \u2013 When the Bulls Go Wild<\/h2>\n\n\n\n<p>An <strong>upper circuit<\/strong> in the stock market refers to the highest price a stock can reach in a single trading day. Once this price limit is hit, no more buy orders can push the price higher for the rest of the session. It\u2019s like a speed breaker placed by the stock exchange to control excessive price spikes caused by heavy buying interest or market euphoria.<\/p>\n\n\n\n<p>Upper circuits are part of what's called the <strong>circuit filter<\/strong> or <strong>circuit breaker system<\/strong>, and they are set by exchanges like <a href=\"https:\/\/www.nseindia.com\/\" data-type=\"link\" data-id=\"https:\/\/www.nseindia.com\/\" target=\"_blank\" rel=\"noopener\">N<\/a><a href=\"https:\/\/www.nseindia.com\/\" data-type=\"link\" data-id=\"https:\/\/www.nseindia.com\/\" target=\"_blank\" rel=\"noreferrer noopener\">S<\/a><a href=\"https:\/\/www.nseindia.com\/\" data-type=\"link\" data-id=\"https:\/\/www.nseindia.com\/\" target=\"_blank\" rel=\"noopener\">E<\/a> or <a href=\"https:\/\/www.bseindia.com\/\" target=\"_blank\" data-type=\"link\" data-id=\"https:\/\/www.bseindia.com\/\" rel=\"noreferrer noopener\">BSE<\/a>. These filters protect investors from sudden and sharp movements by temporarily stopping the stock from moving further. When a stock hits the upper circuit, trading may either be paused or allowed only on the sell side, depending on the situation.<\/p>\n\n\n\n<p>Now, the <strong>upper circuit percentage<\/strong> isn\u2019t the same for every stock. It depends on the stock\u2019s category, past volatility, and SEBI\u2019s circuit rules. For example, some stocks may have a 2% or 5% circuit limit, while others can go up to 10% or even 20%.<\/p>\n\n\n\n<p><em>On <\/em><strong><em>11th April 2025<\/em><\/strong><em>, <\/em><strong><em>Orient Technologies Ltd.<\/em><\/strong><em> hit its <\/em><strong><em>upper circuit of 5%<\/em><\/strong><em>, rising from a <\/em><strong><em>day low of \u20b9341<\/em><\/strong><em> to a <\/em><strong><em>high of \u20b9349.75<\/em><\/strong><em>. That\u2019s a <\/em><strong><em>price increase of \u20b916.65<\/em><\/strong><em> in a single trading session. As a result, no further buying was allowed beyond this price for the rest of the day.<\/em><\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full\"><img fetchpriority=\"high\" decoding=\"async\" width=\"490\" height=\"176\" src=\"https:\/\/lakshmishree.com\/blog\/wp-content\/uploads\/2025\/04\/image.png\" alt=\"\" class=\"wp-image-12272\" srcset=\"https:\/\/lakshmishree.com\/blog\/wp-content\/uploads\/2025\/04\/image.png 490w, https:\/\/lakshmishree.com\/blog\/wp-content\/uploads\/2025\/04\/image-150x54.png 150w\" sizes=\"(max-width: 490px) 100vw, 490px\" \/><\/figure>\n<\/div>\n\n\n<p class=\"has-text-align-center\"><a href=\"https:\/\/lakshmishree.com\/blog\/drhp-full-form\/\"><mark style=\"background-color:#f7dada\" class=\"has-inline-color\"><strong>DRHP Full Form in IPO \u2013 Meaning, SEBI Filing &amp; DRHP vs RHP<\/strong><\/mark><\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"lower-circuit-meaning-when-panic-takes-over\">Lower Circuit Meaning \u2013 When Panic Takes Over<\/h2>\n\n\n\n<p>A <strong>lower circuit<\/strong> in the stock market is the lowest price a stock can fall to in a single trading day. When the price hits this limit, trading is either halted or restricted to prevent it from falling any further. This mechanism is a type of <strong>circuit breaker<\/strong> or <strong>circuit filter<\/strong>, set in place to stop panic selling and give the market time to breathe.<\/p>\n\n\n\n<p>Think of it like a safety net \u2014 when investors start selling a stock rapidly due to fear, bad news, or rumors, the price may crash uncontrollably. To avoid a total free-fall, the exchange places a <strong>lower circuit limit<\/strong>, which is a fixed percentage based on the previous day\u2019s closing price. Once this limit is hit, no more selling orders can be executed beyond that price. However, buyers are still allowed to place bids, but only at or above the lower circuit level \u2014 which makes exiting a falling stock extremely difficult.<\/p>\n\n\n\n<p>Just like upper circuits, <strong>lower circuit percentages can also vary<\/strong> \u2014 common bands are 2%, 5%, 10%, or 20%, depending on the stock's category, <a href=\"https:\/\/lakshmishree.com\/blog\/what-is-india-vix-volatility-index\/\" target=\"_blank\" data-type=\"link\" data-id=\"https:\/\/lakshmishree.com\/blog\/what-is-india-vix-volatility-index\/\" rel=\"noreferrer noopener\">volatility<\/a>, and whether it's in the derivatives segment.<\/p>\n\n\n\n<p><em>On <\/em><strong><em>11th April 2025<\/em><\/strong><em>, <\/em><strong><em>Raj Television Network Ltd.<\/em><\/strong><em> hit its <\/em><strong><em>lower circuit of 10%<\/em><\/strong><em>, tumbling from a high of <\/em><strong><em>\u20b988<\/em><\/strong><em> down to a <\/em><strong><em>low of \u20b972<\/em><\/strong><em> during the day. The sharp decline likely triggered panic among retail investors, and no further selling was allowed once the price touched that circuit limit.<\/em><\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full\"><img decoding=\"async\" width=\"416\" height=\"181\" src=\"https:\/\/lakshmishree.com\/blog\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-15-100054.png\" alt=\"\" class=\"wp-image-12273\" srcset=\"https:\/\/lakshmishree.com\/blog\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-15-100054.png 416w, https:\/\/lakshmishree.com\/blog\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-15-100054-150x65.png 150w\" sizes=\"(max-width: 416px) 100vw, 416px\" \/><\/figure>\n<\/div>\n\n\n<h2 class=\"wp-block-heading\" id=\"difference-between-upper-circuit-and-lower-circuit\">Difference Between Upper Circuit and Lower Circuit<\/h2>\n\n\n\n<p>The <strong>difference between upper circuit and lower circuit<\/strong> lies in the direction of price movement and the reason behind the trading halt. While an upper circuit stops a stock from rising further due to high demand, a lower circuit prevents it from falling endlessly during panic selling.&nbsp;<\/p>\n\n\n\n<div class=\"wp-block-group is-vertical is-content-justification-stretch is-layout-flex wp-container-core-group-is-layout-b16ad781 wp-block-group-is-layout-flex\">\n<figure class=\"wp-block-table\"><table><thead><tr><th>Factor<\/th><th>Upper Circuit<\/th><th>Lower <strong>Circuit<\/strong><\/th><\/tr><\/thead><tbody><tr><td><strong>Price Movement Direction<\/strong><\/td><td>Upward (stock price rises sharply)<\/td><td>Downward (stock price falls rapidly)<\/td><\/tr><tr><td><strong>Market Sentiment<\/strong><\/td><td>Bullish (strong buying interest)<\/td><td>Bearish (heavy selling pressure)<\/td><\/tr><tr><td><strong>Trading Impact<\/strong><\/td><td>No further buying is allowed after hitting the limit<\/td><td>No further selling allowed beyond the limit<\/td><\/tr><tr><td><strong>Investor Emotion<\/strong><\/td><td>Excitement, <a href=\"https:\/\/www.moneycontrol.com\/news\/business\/personal-finance\/understanding-fomo-in-trading-how-the-fear-of-missing-out-impacts-your-decisions-12831034.html\" target=\"_blank\" data-type=\"link\" data-id=\"https:\/\/www.moneycontrol.com\/news\/business\/personal-finance\/understanding-fomo-in-trading-how-the-fear-of-missing-out-impacts-your-decisions-12831034.html\" rel=\"noreferrer noopener\">FOMO (Fear of Missing Out)<\/a><\/td><td>Fear, Panic, Uncertainty<\/td><\/tr><tr><td><strong>Reason\/Trigger<\/strong><\/td><td>Positive news, strong earnings, breakout patterns<\/td><td>Negative news, poor earnings, market panic<\/td><\/tr><tr><td><strong>Liquidity Status<\/strong><\/td><td>Buyers available, sellers disappear<\/td><td>Sellers exist, but buyers become scarce<\/td><\/tr><tr><td><strong>Circuit Filter Percentage<\/strong><\/td><td>Typically 2%, 5%, 10%, or 20%<\/td><td>Same \u2013 depends on stock category and volatility<\/td><\/tr><tr><td><strong>Example<\/strong><\/td><td>Orient Technologies Ltd. hitting 5% upper circuit<\/td><td>Raj Television Network Ltd. hitting 10% lower circuit<\/td><\/tr><\/tbody><\/table><\/figure>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"how-are-circuit-limits-set-for-indices\">How Are Circuit Limits Set for Indices?<\/h2>\n\n\n\n<p>While circuit limits are commonly known for individual stocks, many new investors don\u2019t realize that even <strong>stock market indices like Nifty and Sensex have upper and lower circuit breakers<\/strong>. These index-wide limits are put in place to handle broad <a href=\"https:\/\/lakshmishree.com\/blog\/what-is-india-vix-volatility-index\/\" target=\"_blank\" data-type=\"link\" data-id=\"https:\/\/lakshmishree.com\/blog\/what-is-india-vix-volatility-index\/\" rel=\"noreferrer noopener\">market volatility<\/a> and prevent sudden crashes or spikes from creating chaos in the system.<\/p>\n\n\n\n<p>In India, the SEBI-mandated circuit breaker system is activated when major indices move sharply \u2014 either upward or downward \u2014 by 10%, 15%, or 20% from the previous day\u2019s closing level. When triggered, these index circuit filters lead to a temporary halt in both the equity and derivatives markets, allowing time for traders, investors, and institutions to assess the situation calmly.<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full is-resized\"><a href=\"https:\/\/bit.ly\/lisl_blogs\" target=\"_blank\" rel=\" noreferrer noopener\"><img decoding=\"async\" width=\"909\" height=\"280\" src=\"https:\/\/lakshmishree.com\/blog\/wp-content\/uploads\/2025\/02\/Blog-in-article-banners-26.jpg\" alt=\"Start Investing - LISPL Investment\" class=\"wp-image-11711\" style=\"width:549px;height:auto\" srcset=\"https:\/\/lakshmishree.com\/blog\/wp-content\/uploads\/2025\/02\/Blog-in-article-banners-26.jpg 909w, https:\/\/lakshmishree.com\/blog\/wp-content\/uploads\/2025\/02\/Blog-in-article-banners-26-752x232.jpg 752w, https:\/\/lakshmishree.com\/blog\/wp-content\/uploads\/2025\/02\/Blog-in-article-banners-26-768x237.jpg 768w, https:\/\/lakshmishree.com\/blog\/wp-content\/uploads\/2025\/02\/Blog-in-article-banners-26-150x46.jpg 150w\" sizes=\"(max-width: 909px) 100vw, 909px\" \/><\/a><\/figure>\n<\/div>\n\n\n<div style=\"height:29px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"index-wide-circuit-breaker-timings-in-india\">Index-Wide Circuit Breaker Timings in India<\/h2>\n\n\n\n<p>Here\u2019s a simple breakdown of how long the trading pause lasts depending on the size of the market movement and the time it happens:<\/p>\n\n\n\n<p><strong>1. 10% Movement (Rise or Fall)<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Before 1:00 PM<\/strong> \u2013 Trading halts for <strong>45 minutes<\/strong><\/li>\n\n\n\n<li><strong>Between 1:00 PM and 2:30 PM<\/strong> \u2013 Trading halts for <strong>15 minutes<\/strong><\/li>\n\n\n\n<li><strong>After 2:30 PM<\/strong> \u2013 <strong>No halt<\/strong> (Market remains open despite the move)<\/li>\n<\/ul>\n\n\n\n<p><strong>2. 15% Movement (Rise or Fall)<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Before 1:00 PM<\/strong> \u2013 <strong>1 hour 45-minute<\/strong> trading halt<\/li>\n\n\n\n<li><strong>Between 1:00 PM and 2:30 PM<\/strong> \u2013 <strong>45-minute<\/strong> trading halt<\/li>\n\n\n\n<li><strong>After 2:30 PM<\/strong> \u2013 Trading is <strong>halted for the rest of the day<\/strong><\/li>\n<\/ul>\n\n\n\n<p><strong>3. 20% Movement (Rise or Fall)<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Trading is <strong>completely stopped for the day<\/strong>, no matter when it happens<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"why-do-stocks-hit-upper-or-lower-circuits\">Why Do Stocks Hit Upper or Lower Circuits?<\/h2>\n\n\n\n<p>Stocks usually hit the upper or lower circuit when there's an extreme shift in demand or supply due to strong news, sudden developments, or emotional trading behaviour.&nbsp;<\/p>\n\n\n\n<p>Here are the real and practical reasons why <a href=\"https:\/\/lakshmishree.com\/blog\/high-book-value-stocks-in-india\/\">stocks hit circuit limits in India<\/a>:<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li><strong>Company-Specific News: <\/strong>Announcements like mergers, acquisitions, bonus issues, or major contracts can lead to a price surge, pushing the stock into an <strong>upper circuit<\/strong>. On the flip side, news about fraud, debt defaults, or loss of big clients can trigger a <strong>lower circuit<\/strong>.<\/li>\n\n\n\n<li><strong>&nbsp;Earnings Results: <\/strong>A company posting much higher profits than expected often sees strong buying interest, hitting the upper limit. Poor results or unexpected losses usually lead to panic selling, triggering the lower circuit.<\/li>\n\n\n\n<li><strong>Insider Activity or Bulk Deals:<\/strong> Large buy or sell orders from promoters or institutional investors can influence price movement quickly. Retail investors often follow this trend, which can push the stock toward its circuit band.<\/li>\n\n\n\n<li><strong>Market Rumors and Speculation: <\/strong>In <a href=\"https:\/\/lakshmishree.com\/blog\/best-small-cap-mutual-funds-to-invest\/\" target=\"_blank\" data-type=\"link\" data-id=\"https:\/\/lakshmishree.com\/blog\/best-small-cap-mutual-funds-to-invest\/\" rel=\"noreferrer noopener\">small-cap<\/a> and <a href=\"https:\/\/lakshmishree.com\/blog\/15-best-penny-stocks-to-buy-in-india-2024\/\" target=\"_blank\" data-type=\"link\" data-id=\"https:\/\/lakshmishree.com\/blog\/15-best-penny-stocks-to-buy-in-india-2024\/\" rel=\"noreferrer noopener\">penny stocks<\/a>, even an unverified news item or WhatsApp forward can cause a sharp move in price, especially when trading volume is low.<\/li>\n\n\n\n<li><strong>Regulatory Actions:<\/strong> If SEBI or the stock exchange imposes restrictions, penalties, or investigation on a company, the stock usually hits the <strong>lower circuit<\/strong> due to loss of investor confidence.<\/li>\n\n\n\n<li><strong>Momentum or Technical Breakouts: <\/strong>Some traders follow <a href=\"https:\/\/lakshmishree.com\/blog\/best-swing-trading-patterns\/\" target=\"_blank\" data-type=\"link\" data-id=\"https:\/\/lakshmishree.com\/blog\/best-chart-patterns-books\/\" rel=\"noreferrer noopener\">chart patterns<\/a>. If a stock breaks out of a <a href=\"https:\/\/lakshmishree.com\/blog\/support-and-resistance\/\" target=\"_blank\" data-type=\"link\" data-id=\"https:\/\/lakshmishree.com\/blog\/support-and-resistance\/\" rel=\"noreferrer noopener\">resistance level or support zone<\/a>, technical traders rush in. This momentum can lead to sudden circuit hits.<\/li>\n\n\n\n<li><strong>Low Float and Thin Liquidity<\/strong>: In stocks with <strong><a href=\"https:\/\/lakshmishree.com\/blog\/free-float-market-capitalisation\/\" data-type=\"link\" data-id=\"https:\/\/lakshmishree.com\/blog\/free-float-market-capitalisation\/\" target=\"_blank\" rel=\"noreferrer noopener\">low free float<\/a><\/strong> (very few shares available for trading), even small buying or selling activity can cause big price moves, easily triggering the circuit filter.<\/li>\n<\/ol>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"what-happens-when-a-stock-hits-circuit\">What Happens When a Stock Hits Circuit?<\/h2>\n\n\n\n<p>When a stock hits either its upper circuit or lower circuit, it means the price has reached its maximum allowed movement for the day, as per the circuit filter set by the stock exchange. Once this limit is reached, trading in that stock gets restricted to control excessive volatility and prevent panic.<\/p>\n\n\n\n<p>Here\u2019s what typically happens:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>No Orders Beyond the Circuit Price<\/strong><\/li>\n\n\n\n<li><strong>Only One-Side Orders Work<\/strong>:\n<ul class=\"wp-block-list\">\n<li>If a stock hits its <strong>upper circuit<\/strong>, only <strong>sell orders<\/strong> are accepted.<\/li>\n\n\n\n<li>If it hits the <strong>lower circuit<\/strong>, only <strong>buy orders<\/strong> are accepted.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Orders May Stay Pending<\/strong><\/li>\n\n\n\n<li><strong>Trading Resumes Only If Circuit is Revised<\/strong><\/li>\n<\/ul>\n\n\n\n<p class=\"has-text-align-center\"><a href=\"https:\/\/lakshmishree.com\/blog\/nrml-full-form-in-share-market\/\"><mark style=\"background-color:#fee9e9\" class=\"has-inline-color\"><strong>NRML Full Form in Share Market | NRML vs MIS<\/strong><\/mark><\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"risks-and-rewards-of-circuit-hit-stocks\">Risks and Rewards of Circuit-Hit Stocks<\/h2>\n\n\n\n<p>Stocks that hit their circuit limits may look exciting, but they come with their own set of risks and rewards. Understanding both sides is crucial before making any trade decisions.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"rewards-why-traders-love-circuit-stocks\"><strong>Rewards (Why Traders Love Circuit Stocks):<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Quick Gains<\/strong>: Stocks in an <strong>upper circuit<\/strong> often offer fast returns within minutes or hours, especially for momentum traders.<\/li>\n\n\n\n<li><strong>Strong Sentiment<\/strong>: If a stock repeatedly hits upper circuits, it may indicate strong investor confidence or positive developments.<\/li>\n\n\n\n<li><strong>Entry Signal<\/strong>: Some traders use upper circuit hits as a signal to track breakouts or trending stocks.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"risks-what-most-beginners-overlook\"><strong>Risks (What Most Beginners Overlook):<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Liquidity Trap<\/strong>: In <strong>lower circuit stocks<\/strong>, there are usually no buyers. Even if you want to exit, you may get stuck with unsold shares.<\/li>\n\n\n\n<li><strong>Price Manipulation<\/strong>: In low-volume or small-cap stocks, circuits are sometimes <strong>triggered artificially<\/strong> to lure retail investors.<\/li>\n\n\n\n<li><strong>False Signals<\/strong>: A stock hitting an upper circuit doesn\u2019t always mean long-term strength \u2014 it might just be a temporary hype.<\/li>\n\n\n\n<li><strong>No Exit Route<\/strong>: When a stock is locked in a lower circuit for multiple days, your capital gets stuck, sometimes for weeks.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"how-to-track-upper-or-lower-circuit-stocks-daily\">How to Track Upper or Lower Circuit Stocks Daily<\/h2>\n\n\n\n<p>Keeping an eye on <strong>stocks that hit <a href=\"https:\/\/lakshmishree.com\/blog\/top-liquor-companies-in-india\/\">upper or lower circuits<\/a><\/strong> can help you understand market trends, spot momentum stocks, or avoid getting trapped in illiquid trades. Luckily, you don\u2019t need to guess \u2014 there are reliable sources that update this data in real-time.<\/p>\n\n\n\n<p>Here\u2019s where you can track circuit-hit stocks daily:<\/p>\n\n\n\n<p><strong>1. NSE India (Official Website)<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Visit<a href=\"https:\/\/www.nseindia.com\" target=\"_blank\" rel=\"noopener\"> NSE's Official Site<\/a><\/li>\n\n\n\n<li>Go to <em>\u201cMarket Data\u201d &gt; \u201cEquity Stock Watch\u201d<\/em><\/li>\n\n\n\n<li>You\u2019ll find a list of stocks that hit upper or lower circuits during the trading session<\/li>\n<\/ul>\n\n\n\n<p><strong>2. BSE India (Official Website)<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Visit<a href=\"https:\/\/www.bseindia.com\" target=\"_blank\" rel=\"noopener\"> BSE's Official Site<\/a><\/li>\n\n\n\n<li>Under <em>\u201cMarkets\u201d<\/em>, select <em>\u201cEquity\u201d<\/em>, and then click on <em>\u201cGainers\/Losers\u201d<\/em><\/li>\n\n\n\n<li>You can filter stocks based on upper and lower circuit limits<\/li>\n<\/ul>\n\n\n\n<p><strong>3. Moneycontrol &amp; Economic Times Markets<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Both platforms provide real-time data on <strong>circuit breaker stocks<\/strong>, price bands, and stock-specific movements.<\/li>\n\n\n\n<li>Useful for tracking news-based circuit hits with analysis<\/li>\n<\/ul>\n\n\n\n<p><strong>4. Stock Market Apps (like lakshmishree)<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>These apps show circuit-hit stocks live on the watchlist page<\/li>\n\n\n\n<li>You can even set alerts for circuit limits to get notified instantly<\/li>\n<\/ul>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full is-resized\"><a href=\"https:\/\/bit.ly\/lisl_blogs\" target=\"_blank\" rel=\" noreferrer noopener\"><img loading=\"lazy\" decoding=\"async\" width=\"909\" height=\"280\" src=\"https:\/\/lakshmishree.com\/blog\/wp-content\/uploads\/2025\/02\/Blog-in-article-banners-26.jpg\" alt=\"Start Investing - LISPL Investment\" class=\"wp-image-11711\" style=\"width:614px;height:auto\" srcset=\"https:\/\/lakshmishree.com\/blog\/wp-content\/uploads\/2025\/02\/Blog-in-article-banners-26.jpg 909w, https:\/\/lakshmishree.com\/blog\/wp-content\/uploads\/2025\/02\/Blog-in-article-banners-26-752x232.jpg 752w, https:\/\/lakshmishree.com\/blog\/wp-content\/uploads\/2025\/02\/Blog-in-article-banners-26-768x237.jpg 768w, https:\/\/lakshmishree.com\/blog\/wp-content\/uploads\/2025\/02\/Blog-in-article-banners-26-150x46.jpg 150w\" sizes=\"(max-width: 909px) 100vw, 909px\" \/><\/a><\/figure>\n<\/div>\n\n\n<div style=\"height:25px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"how-circuit-breakers-saved-the-indian-stock-market\">How Circuit Breakers Saved the Indian Stock Market<\/h2>\n\n\n\n<p>Circuit breakers have played a critical role in stabilizing the <a href=\"https:\/\/lakshmishree.com\/blog\/history-of-indian-stock-market\/\" target=\"_blank\" data-type=\"link\" data-id=\"https:\/\/lakshmishree.com\/blog\/history-of-indian-stock-market\/\" rel=\"noreferrer noopener\">Indian stock market<\/a> during extreme volatility. They are automatic trading halts triggered when Nifty or Sensex move sharply \u2014 up or down \u2014 by 10%, 15%, or 20%.<\/p>\n\n\n\n<p><strong>Case Study: March 2020 COVID Crash<\/strong><\/p>\n\n\n\n<p>During the first wave of the pandemic in <strong>March 2020<\/strong>, Indian markets saw record-breaking falls. On <strong>March 13, 2020<\/strong>, Nifty plunged nearly <strong>10%<\/strong>, triggering a circuit breaker for the first time in over a decade. The halt allowed investors and institutions to pause, assess the situation, and reduce panic selling \u2014 preventing a complete market meltdown.<\/p>\n\n\n\n<p><strong>&nbsp;Why Circuit Breakers Matter<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>They <strong>pause trading temporarily<\/strong>, giving the market time to cool off.<\/li>\n\n\n\n<li>Prevent <strong>emotion-driven trades<\/strong> in high-stress moments.<\/li>\n\n\n\n<li>Help avoid <strong>chain reactions<\/strong> across equity and derivatives segments.<\/li>\n\n\n\n<li>Protect <strong>retail investors<\/strong> from instant heavy losses.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"conclusion\">Conclusion<\/h2>\n\n\n\n<p>The role of upper circuit and lower circuit in the stock market goes far beyond just price limits \u2014 they act as essential tools to maintain balance during sudden buying or selling pressure. Whether a stock is racing upward or crashing down, these circuit filters help prevent panic and protect investors from extreme volatility. In India, knowing how these price bands work, when they're triggered, and what actions you can take during circuit hits can make a big difference in your trading results. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"fa-qs-on-upper-and-lower-circuit-in-stock-market\"><strong>Frequently Asked Questions<\/strong><\/h2>\n\n\n<div id=\"rank-math-faq\" class=\"rank-math-block\">\n<ol class=\"rank-math-list \">\n<li id=\"faq-question-1744458725849\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><strong>Who decides upper circuit and lower circuit?<\/strong><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>The upper circuit and lower circuit limits for each stock are set by the stock exchanges\u2014primarily NSE (National Stock Exchange) and BSE (Bombay Stock Exchange)\u2014based on guidelines issued by SEBI (Securities and Exchange Board of India).<\/p>\n\n<\/div>\n<\/li>\n<li id=\"faq-question-1744458741345\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><strong>When does upper circuit change from 5 to 10?<\/strong><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>A stock\u2019s circuit limit can change depending on its <a href=\"https:\/\/lakshmishree.com\/blog\/what-is-india-vix-volatility-index\/\" target=\"_blank\" data-type=\"link\" data-id=\"https:\/\/lakshmishree.com\/blog\/what-is-india-vix-volatility-index\/\" rel=\"noreferrer noopener\">price volatility<\/a>, trading volume, and category. For example, if a stock consistently hits its 5% upper circuit with high volume and investor interest, the exchange may decide to increase the upper circuit filter to 10% (or higher) to allow more price discovery. <\/p>\n\n<\/div>\n<\/li>\n<li id=\"faq-question-1744458754439\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><strong>What is lower circuit in share market?<\/strong><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>The lower circuit in the share market refers to the lowest price level a stock can fall to in a day. When the price hits this lower limit, no more sell orders can be executed unless there are buyers willing to purchase at that exact circuit price. This system is designed to protect investors from panic-driven free falls and sudden negative news, giving time for the market to cool off and recover rationally.<\/p>\n\n<\/div>\n<\/li>\n<li id=\"faq-question-1744458769892\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><strong>Is it good to buy at lower circuit?<\/strong><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>Buying at the lower circuit price can be risky and should be approached with caution. While it may seem like a stock is available at a bargain, the lack of buyers and negative sentiment can indicate deeper issues, such as poor fundamentals or regulatory concerns. <\/p>\n\n<\/div>\n<\/li>\n<li id=\"faq-question-1744458782492\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><strong>Is it good to buy upper circuit stocks?<\/strong><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>Buying upper circuit stocks might look attractive due to the strong momentum, but it can be tricky. These stocks often rise rapidly due to hype, news, or speculation, and once the circuit is hit, you may not be able to buy any more unless the circuit limit is revised. It\u2019s important to evaluate whether the stock\u2019s rally is backed by strong fundamentals or just a short-term spike. <\/p>\n\n<\/div>\n<\/li>\n<\/ol>\n<\/div>\n\n\n<pre class=\"wp-block-code\"><code><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-red-color\"><strong>Disclaimer:<\/strong>&nbsp;This article is for educational purposes only and should not be considered financial advice. Always conduct your research and consider consulting with a financial advisor before making any investment decisions.<\/mark><\/code><\/pre>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Have you ever noticed a stock suddenly stop moving\u2014either at its highest or lowest point of the day\u2014and wondered, \"Why can't I buy or sell it anymore?\" Well, that\u2019s where the upper circuit and lower circuit come into play. These are special limits set by the stock market to control wild price movements and protect [&hellip;]<\/p>\n","protected":false},"author":5,"featured_media":12270,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[269],"tags":[654],"class_list":["post-12259","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-basics","tag-upper-circuit-and-lower-circuit"],"_links":{"self":[{"href":"https:\/\/lakshmishree.com\/blog\/wp-json\/wp\/v2\/posts\/12259","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lakshmishree.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/lakshmishree.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/lakshmishree.com\/blog\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/lakshmishree.com\/blog\/wp-json\/wp\/v2\/comments?post=12259"}],"version-history":[{"count":5,"href":"https:\/\/lakshmishree.com\/blog\/wp-json\/wp\/v2\/posts\/12259\/revisions"}],"predecessor-version":[{"id":15204,"href":"https:\/\/lakshmishree.com\/blog\/wp-json\/wp\/v2\/posts\/12259\/revisions\/15204"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/lakshmishree.com\/blog\/wp-json\/wp\/v2\/media\/12270"}],"wp:attachment":[{"href":"https:\/\/lakshmishree.com\/blog\/wp-json\/wp\/v2\/media?parent=12259"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/lakshmishree.com\/blog\/wp-json\/wp\/v2\/categories?post=12259"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/lakshmishree.com\/blog\/wp-json\/wp\/v2\/tags?post=12259"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}