High-frequency trading was active in Presstonic Engineering, Aarti Pharmalabs, and Alembic Limited on May 14. Aarti Pharmalabs touched a 52-week high on May 14.
High-frequency trading firms (HTFs) – or algo firms on steroids –use complex algorithms and powerful computers to execute trades at lightning speeds. These firms typically try to capture the spread between the spot and futures prices, but recently they have been active in small, illiquid stocks as well.
The volumes generated by them, more often than not, attract retail investors to these stocks.
Stocks where HFTs were active on May 14 :
Presstonic Engineering
Active names and traded stake: Mansi Share and Stock Advisors (1.57 percent), Multiplier Share and Stock Advisors (1.29 percent)
Stock movement and volumes: Lost 19.99 percent to Rs 123.5. Trading volumes at 50 lakh shares versus 1-month average of 93,000 shares
Technicals: Stock is above 50-DMA and 200-DMA
Fundamental trigger, if any: The company on May 13 announced its Q4FY24 results
Aarti Pharmalabs
Active names and traded stake: Graviton Research Capital (0.54 percent),
Stock movement and volumes: Gained 18.84 percent to Rs 618.05. Trading volumes at 79 lakh shares versus 1-month average of 6 lakh shares
Technicals: Stock is above 50-DMA and 200-DMA
Fundamental trigger, if any: The company on May 13 announced its Q4FY24 results
Alembic Limited
Active names and traded stake: Graviton Research Capital (0.53 percent)
Stock movement and volumes: Gained 14.49 percent to Rs 100.35. Trading volumes at 2 crore shares versus 1-month average of 15 lakh shares
Technicals: Stock is above 50-DMA and 200-DMA
Fundamental trigger, if any: The company on May 13 announced its Q4FY24 results
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