HFT Scan: Aarti Surfactants and MCX in focus

High-frequency trading firms (HTFs) – or algo firms on steroids –use complex algorithms and powerful computers to execute trades at lightning speeds.

High-frequency trading was active in Aarti Surfactants, Multi-Commodity Exchange, and Hindustan Motors on April 29. Aarti Surfactants and Hindustan Motors closed higher.

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, attracts retail investors to these stocks.

Stocks where HFTs were active on April 29 :

Aarti Surfactants

Active names and traded stake: Graviton Research Capital (0.6 percent), QE Securities (1.6 percent).

Stock movement and volumes: Gained 11.75 percent to Rs 729.7. Trading volumes at 23 lakh shares versus 1-month average of 55,000 shares

Technicals: Stock is above 50-DMA and 200-DMA

Fundamental trigger, if any: No

Multi-commodity Exchange

Active names and traded stake: Graviton Research Capital (0.91 percent), Yuga Stocks and Commodities Private Limited (1.49 percent),

Stock movement and volumes: Lost 2.43 percent to Rs 4066.4. Trading volumes at 22 lakh shares versus 1-month average of 14 lakh shares

Technicals: Stock is above 50-DMA and 200-DMA

Fundamental trigger, if any: No

Hindustan Motors

Active names and traded stake: Yuga Stocks and Commodities (0.6 percent), Mansi Share and Stock Advisors (0.77 percent), Ankit Vishal Shah (0.5 percent)

Stock movement and volumes: Gained 9.95 percent to Rs 31.5. Trading volumes at 2 crore shares versus 1-month average of 84 lakh shares

Technicals: Stock is above 50-DMA and 200-DMA

Fundamental trigger, if any: No