Also asked, how do you buy stocks in the upper circuit?
The mantra should be; buy low and sell high. Value investing is the key to long term returns. Wait for herding in the opposite direction when a stock falls rapidly based on panic from false information.
Also, how do you break the upper circuit of a stock? These circuit breakers when triggered bring about a coordinated trading halt in all equity and equity derivative markets nationwide. The market-wide circuit breakers are triggered by movement of either the BSE Sensex or the Nifty 50, whichever is breached earlier.
Correspondingly, what is the upper circuit of a stock?
An upper circuit is the maximum price to which a stock is allowed to move upwards. Similarly, a lower circuit is the minimum price to which a stock is allowed to fall downwards. Most stocks start with a 20% circuit.
How is upper circuit determined?
When the volatility of a stock breaks a certain limit as decided by the exchange, trading in that stock is stopped for some time. The limit is fixed as a percentage of the stock's price by the stock exchange. The rules for circuit breaking are decided by the Securities exchange Board.
