Nifty Circuit Limits today

Nifty Circuit Limits for today are :

10% 3973.75
15% 4124.80
20% 4275.85


Like circuit limits on individual stocks, there are restrictions on the movement of indices (Sensex and Nifty). There are 3 types of circuit limits 10%,15% and 20% limits. These circuit limits are applicable for the movement of the indices either in positive direction or in negative direction.

Trading in both the exchanges will come to halt if the movement exceeds the limits in any one of the exchanges.

If the 10% movement takes place before 1:00 p.m. then market will be halted for an hour and if it takes place at or after 1:00 p.m. but before 2:30 p.m. then market will be halted for half an hour. If the movement takes place after 2:30 p.m. then there won’t be any trading halt.

On resumption of trading after the halted period is elapsed, if the market hits 10% again there won’t be any halt in the trading. But if the market hits 15%, there shall be a halt of 2 hours if the movement happens before 1 p.m. If the 15% limit is breached at or after 1 p.m. but before 2 p.m. then there would be trading halt of 1 hour. If it happens after 2 p.m. then there won’t be further trading on that day.

On the resumption if the market hits 20% limit at any time during the trading hours, the trading will be suspended on that day.

These limits are put in place to stop excessive speculation and control the liquidity.

A point to be noted here is that the absolute values of these 10%, 15% and 20% limits are not based on the previous day’s close as in case of individual stocks circuit limits. These values are calculated and announced by the bourses (NSE and BSE) at the beginning of each quarter. The absolute points are calculated based on closing level of index on the last day of the trading in a quarter and rounded off to the nearest 10 points in case of Nifty. This limit is applicable for the entire quarter.

Sensex to fly high

Stocks in India are expected to fly high on opening bell as money on the sidelines is likely to flow in to the market on hopes that the Singh led UPA government is likely to bolster the slowing economy with financial reforms. Expect the Sensex to gain more than 400 points or 4 percent for the day.

We might see heavy buying in the PSU stocks on speculation that the newly formed Singh government is likely to implement the disinvestment program in the next few months. There might be 40 to 50 percent move in these stocks and we have given our picks in these sectors to our subscribers.

Telecom and Insurance sectors are going to be the major beneficiaries if the government move ahead with measures to increase FDI Cap from 26 to 49 percent. Banking and Infra structure stocks are likely to be among the gainers in today's trade.Analysts in the market expect the Sensex to touch 14,000 level, barring any major global melt down.

We advise investors not to buy in the first hour of the market as we are likely to see a huge gap up pending of more than 700 points. One could look at buying stocks in the afternoon session, as things are likely to cool off after initial euphoria. It is a good idea trim your holdings in speculative counters and build positions in PSU and related entities going forward.Overall a great day for the stocks, but we expect some cool off after an explosive opening in the morning