High-frequency trading was active in Aditya Birla Money, Tourism Finance Corporation of India, and Tera Software on June 7. Aditya Birla Money touched a 52-week high on June 7.
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 June 7:
Aditya Birla Money
Active names and traded stake: Graviton Research Capital (0.68 percent)
Stock movement and volumes: Gained 16.68 percent to Rs 155.65. Trading volumes at 48 lakh shares versus 1-month average of 4 lakh shares
Technicals: Stock is above 50-DMA and 200-DMA
Fundamental trigger, if any: No
Tourism Finance Corporation of India
Active names and traded stake: Graviton Research Capital (0.6 percent)
Stock movement and volumes: Lost 8.1 percent to Rs 173.4. Trading volumes at 56 lakh shares versus 1-month average of 10 lakh shares
Technicals: Stock is above 50-DMA and 200-DMA
Fundamental trigger, if any: No
Tera Software
Active names and traded stake: NK Securities Research Private Limited (0.79 percent)
Stock movement and volumes: Gained 7.97 percent to Rs 75.15. Trading volumes at 9 lakh shares versus 1-month average of 1 lakh shares
Technicals: Stock is below 50-DMA and 200-DMA
Fundamental trigger, if any: No
Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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