Upper Circuit
The state in which a security is trading at the top of its permitted price band, with buy orders pending and no sellers.
Formula
Upper Circuit Price = Previous Close x (1 + Band %)
Unit
₹
In depth
When a stock is locked at the upper circuit there are buyers but no sellers at that price, so the order book shows enormous pending buy quantity and no trades. Sellers who want out get an excellent price; buyers who want in typically cannot execute at all. A series of upper circuits is often read as strength, but in a thinly traded stock it can equally be the visible signature of a manipulation, which is why exchanges move such stocks into trade-for-trade and tighter bands. The lock is a rule about prices, and says nothing about value.
Worked example
A stock closes at ₹100 with a 5% band and opens locked at ₹105 with 20,00,000 shares bid and none offered. Nobody can buy. The apparent 5% gain is available only to holders who choose to sell into the queue.
Illustrative figures, chosen so the arithmetic is easy to follow. Not a live price and not a valuation of any company.
Educational reference only
This entry explains what “Upper Circuit” means. It is not investment advice and not a recommendation to buy or sell any security. Any numbers above are illustrative, not live prices, and nothing here predicts price direction or rates a stock. Consider your own circumstances and consult a SEBI-registered investment adviser before acting.