What Is the circuit limit and contract in sharemarket?

Acconrding to the stock of the week was Akruti City, which jumped 37% despite Friday’s 27% and thursday 15% fall. The NSE will exclude (why ?)the stock from F&O list. Its April and May contracts will close on March 26, 2009. The stock will be available for trading with a 5% circuit.(whats this) can someone expect the above scripe price will fall tomorrow are comming days despite of sensex up (if i hoping)

One Reply to “What Is the circuit limit and contract in sharemarket?”

  1. In the context of stock markets, circuit is the price limit or range, outside which the stock price can’t go.
    For example, let’s say closing price of X stock yesterday was 100 Rs. The applicable circuit limit for X is 5%. In this circumstances, the price of X can’t go above 105 (5% above previous close) and below 95 (5% below previous close).

    Please not that this limit is different for different stocks. For some stocks, the limit may be 5%, while for some stocks, it may be 10% or 20% also. For a newly listed company also, there is a circuit limit of 20% from its issue price.
    If the stock is in F&O there is no cirucit is applicable. in case circuit is 5% it can rise or fall 5 percent daily not more.

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