whats the clear phenomenon of placing a satellite in orbit and cause for...

[sravan]

...its movement in a circular path ? Is the satellite placed in an orbit near to earth's surface where the gravitational pull is acting? If so is that the reason: lack of any resistance in space except the gravitational pull is making the satellite to revolve for such a long period with the given orbital velocity ?

[Southpaw]

Yes, for a satellite place in an orbit near the earth's surface, the earth's gravitational pull acts as centripetal force, keeping the satellite in orbit and preventing it from flying away into space. The lack of any resistance/ friction in space prevents the satellite's speed from decreasing and thus preventing its orbit from decaying.