Answer / umesh joshi

When any index or a stock makes a move in any direction
from more than the specified percentage (%), then it is
said to have entered into a circuit or breaking a circuit.
This specific percentage has been mentioned by the
regulator (SEBI) and is calculated above the previous
close. Generally, the reason behind such a move is heavy
speculation - either about the economy or about a
particular stock.As there are two directions of movement
(up and down), therefore there are two types of circuits
possible - upper circuit and lower circuit. The names
clearly define their respective meanings.

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