HFT Scan: Algo traders drive Dish TV, Indiabulls Real Estate higher

High-frequency traders zoomed in on Dish TV, Indiabulls Real Estate, and Indian Hume Pipe Company, on March 14, driving all the counters higher at close.

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 March 14:

Dish TV Active names and traded stake: HRTI Private Limited (0.6 percent) Stock movement and volumes: Gained 7.97 percent to Rs 17.7. Trading volumes at 8 crore shares versus 1-month average of 9 crore shares Technicals: Stock is above 50-DMA and 200-DMA Fundamental trigger, if any: The company on March 5 appointed Swami Mehra as the head of customer engagement

Indiabulls Real Estate Active names and traded stake: HRTI Private Limited (0.52 percent) Stock movement and volumes: Gained 7.01 percent to Rs 106.15. Trading volumes at 2 crore shares versus 1-month average of 2 crore shares Technicals: Stock is above 50-DMA and 200-DMA Fundamental trigger, if any: NA

Indian Hume Pipe Company Active names and traded stake: Graviton Research Capital (o.5 percent) Stock movement and volumes: Gained 16.1 percent to Rs 274.05. Trading volumes at 24 lakh shares versus 1-week average of 5 lakh shares Technicals: Stock is above 50-DMA and 200-DMA Fundamental trigger, if any: The company was awarded the work order relating to water supply projects and sewerage projects under
AMRUT 2.0 by the Government of Telangana.