Here is an interesting fact that many may not be aware of:
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Importantly, the percentages are calculated not on the basis of the previous day closing levels of Sensex or Nifty, but on the basis of the closing value of the previous quarter.
At present, the indices are much lower than what they were in the last quarter.
e.g Sensex was at 12860 in the last quarter.
10% of 12860 = 1286 points or 11.35% of Sensex's current level.
Tomorrow 10% (the basis of the closing value of the previous quarter) High Freeze on nifty required 302 points.Which i don't think these will happen even though happen there is no sense of buying at that level.....
The FPJ had a bit the other day that indicated a 975 point rise on the Sensex would trigger the first halt? This could be wrong!!!
What is FPJ?
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Originally Posted by jacky
Tomorrow 10% (the basis of the closing value of the previous quarter) High Freeze on nifty required 302 points.Which i don't think these will happen even though happen there is no sense of buying at that level.....
Sensex's close on 31st Match 2009 was 9708.50.
Nifty's close on 31st Match 2009 was 3020.95.
10% circuit for Sensex would be 971 points.
10% circuit for Nifty would be 302 points.
Lower circuits get hit because there is forced selling due to margin calls.
There is nothing like forced buying in cash markets...except may be for a very tiny fraction of participants who are short.
Thus, it is unlikely that a circuit would be hit. Even if it is hit in the first few seconds of trading, selling would emerge at higher levels for sure.
Alchemist
sgx nifty @4126.. if the market opens @ 10% up, do we have the freeze then for one hour...further do you have any historical events of upper circuit for any market..in my memory i don't remember..
Alchemist
sgx nifty @4126.. if the market opens @ 10% up, do we have the freeze then for one hour...further do you have any historical events of upper circuit for any market..in my memory i don't remember..
Yes, there is a good possibility that we will hit the circuit on opening.
and even I think this will be the first time ever that the markets will hit the upper circuit.......at least there has been no upper-circuit since I started trading in 2001.
The circle has turned full circle from 2004 to 2009.
Last time, UPA came to power, we hit the lower circuit.
This time, the same UPA (minus Left) has come to power and we will be hitting the upper circuit.
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but don't forget:
the 2004 lower circuit was a great buying opportunity.
I hope 2009 upper circuit doesn't turn out to be a great selling opportunity....
Alchemist can you give me a link for circuit lock calculation.one of my friend not agrees that 10% high freeze the basis of the closing value of the previous quarter.He says it will be calculated on the previous days closing.so to prove him please give me a link.....
Alchemist can you give me a link for circuit lock calculation.one of my friend not agrees that 10% high freeze the basis of the closing value of the previous quarter.He says it will be calculated on the previous days closing.so to prove him please give me a link.....
If it is calculated on the basis of index variations on a quarterly basis mean Nifty on 31/3/2009 3020. so 10% of it should be at 3684+302=3986...So how it went to 4052??? .
what do you guys say if this jump provides an opportunity to cut some losses .. should one do that... or it chances of going higher are more than going lower !!.
If it is calculated on the basis of index variations on a quarterly basis mean Nifty on 31/3/2009 3020. so 10% of it should be at 3684+302=3986...So how it went to 4052??? .
I have already explained it.
trading is stopped when Nifty's calculated value touches 10% or goes above it.
the calculated value may jump directly from 9% to 15%.
that is what has happened today. Nifty has directly jumped to 15% after opening.
it is not necessary that a calculated value has to be exactly 10%.
Quote:
Originally Posted by number99
upper circuit again !! to reopen at 11:55.
what do you guys say if this jump provides an opportunity to cut some losses .. should one do that... or it chances of going higher are more than going lower !!.
My opinion is that this euphoria is unjustified and nothing is going to change dramatically for the Indian economy.
However, the euphoria may last for a few trading sessions and today may not be the best time to sell.
(I am trying to sell a few stocks from my brother's portfolio today. I hope I am able to sell before the trading is stopped again...).
Also as Alchemist explained, the above values are thresold values to decide whether the circuit is to be applied. and Indexes could have already crossed the values by the time they are calculated and known.
Last edited by panks_07 : 18th May 2009 at 11:35 AM.
Simple If nifty features hit 10% High or low from the previous day close mean the trading will be halted for the hr...Don't mind with spot market nifty....
previous day closing (nifty futures) is 3684.35 10% of it 368.4 points so 3684.35+368.35=4052.70 which is 10%...so trading halted..Though if nifty feature alone move up or down 10% on premium or discount and spot trades only at 5% mean also trading will be halted.
Example:Now nifty features at 4052.80 and nifty spot at 4203.Even though if nifty spot at 3950 mean and if nifty features alone hit 4052.80 mean trading will be halted too..
Simple If nifty features hit 10% High or low from the previous day close mean the trading will be halted for the hr...Don't mind with spot market nifty....
previous day closing (nifty futures) is 3684.35 10% of it 368.4 points so 3684.35+368.35=4052.70 which is 10%...so trading halted..Though if nifty feature alone move up or down 10% on premium or discount and spot trades only at 5% mean also trading will be halted.
Example:Now nifty features at 4052.80 and nifty spot at 4203.Even though if nifty spot at 3950 mean and if nifty features alone hit 4052.80 mean trading will be halted too..
Hope you understand me...
The circuits have nothing to do with Nifty futures.
The futures have no bands....they can go 40% up or down in a day....provided trading is not halted due to the index circuit filters.
Nifty Futures are stuck at 10% because of "operating range" limitations. Orders which are more than 10% away from LTP are not allowed for index futures.
Operating range changes continuously, but as the trading was halted, it didn't get a chance to change.
The circuits have nothing to do with Nifty futures.
The futures have no bands....they can go 40% up or down in a day....provided trading is not halted due to the index circuit filters.
Nifty Futures are stuck at 10% because of "operating range" limitations. Orders which are more than 10% away from LTP are not allowed for index futures.
Operating range changes continuously, but as the trading was halted, it didn't get a chance to change.
thx for correcting me..many are of then unaware of these things.....
It's been a great turnaround for me: from -45% down in the recent March lows to less than -10% now.
Vasa ji, could it be because you did not do much activity in last six months ?
I did some averaging and some fresh buying+profit booking after october lows. And my overall portfolio has come from around -50% during Oct to +10% or something now. But my active portfolio value is like 70% of what it used to be as I released many holding in last 2 weeks.
By the way, is it possible to know whether what happened today was more because of short-covering or fresh buying ? through change in Open Interest or something like that ?
Sorry, there is a technical error in the above numbers. I just learnt that these numbers are rounded off to nearest 25 for SENSEX and nearest 10 for Nifty.
Here is the new picture with correct circuit limits for this quarter ending on Jun-09.
Alchemist I can not edit the prev post. If you can please.
Here are the latest figures for the market-wide circuits (Nifty only).... May come in handy what with the budget looming.
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On June 30, 2009, the last trading day of the quarter, NIFTY closed at 4291.10 points. The absolute points of NIFTY variation (over the previous day’s closing NIFTY) which would trigger market wide circuit breaker for any day in the quarter between July 01, 2009 to September 30, 2009 would be as under:-
Percentage (+/-) Equivalent Point (+/-)
10% >>> 430.00
When I saw the sensex flashing gain of +1000 today but not a proportionate increment in Nifty, I thought that must have been an error in data-transmission. However, on reading the above article I realized that it was true. How could it have been possible without many forces actually synchronizing/setting it up beforehand? Would the trading have stopped at BSE even if people managed to hit the circuit-limit for just 1 second ?
How could it have been possible without many forces actually synchronizing/setting it up beforehand? Would the trading have stopped at BSE even if people managed to hit the circuit-limit for just 1 second ?
Every day, freak orders are placed in the pre-open session and cancelled just before the session ends.
Today, the system stopped working before the session closed and the traders weren't able to cancel their freak orders.
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That's why the stock prices went crazy.
If the circuit had been hit, trading would been stopped for sure.
My Internet connection was down yesterday so I didn't see this. So what happened when the market opened, did some people end up buying at really high prices? And did it come down in a few seconds?
Some 1,354 trades were cancelled. Are these the high price ones?
My Internet connection was down yesterday so I didn't see this. So what happened when the market opened, did some people end up buying at really high prices? And did it come down in a few seconds?
Some 1,354 trades were cancelled. Are these the high price ones?
I am not sure for how long it took before the market stabilized, but all orders placed in the pre-open session were cancelled and all trades done against these orders were also cancelled.
Some trades happened at abnormally high prices and some happened at abnormally low prices.
Index Circuit Breakers
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