High-frequency trading was active in Aditya Birla Fashion and Retail, Sadbhav Engineering and TVS Electronics on April 2, with all three stocks ending the day 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 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 2:
Aditya Birla Fashion and Retail
Active names and traded stake: Graviton Research Capital (0.49 percent)
Stock movement and volumes: Gained 11.58 percent to Rs 236.15. Trading volumes at 9 crore shares versus one-month average of 48 lakh
Technicals: Stock is above 50 and 200-day moving averages (DMAs)
Fundamental trigger, if any: The board on April 1 authorised the management to evaluate vertical demerger of Madura Fashion and Lifestyle business from ABFRL into a separate listed company
Active names and traded stake: Crony Vyapar (0.68 percent), Parth Intfin Brokers (0.84 percent)
Stock movement and volumes: Gained 9.09 percent to Rs 34.2. Trading volumes at 1 crore shares against one-month average of 29 lakh shares
Technicals: Stock is above 50 and 200-DMAs
Fundamental trigger, if any: None
Active names and traded stake: Graviton Research (0.64 percent)
Stock movement and volumes: Gained 9.03 percent to Rs 312.7. Trading volumes at 10 lakh shares versus one-week average of 76,000
Technicals: Stock is above 50 and 200-DMAs
Fundamental trigger, if any: None
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