HFT Scan: Algo traders zoom in on Aavas Financiers, Hilton Metal Forgings

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 seen in Aavas Financiers, Hilton Metal Forgings, and GP Petroleum counters on March 5. Aavas Financiers touched a 52-week low, while GP Petroleum hit a 52-week high.

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 5:

Aavas Financiers

Active names and traded stake: Mansi Share and Stock Advisors (0.49 percent)

Stock movement and volumes: Lost 5.14 percent to Rs 1358.1. Trading volumes at 1 crore shares versus 1-month average of 7 lakh shares

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

Fundamental trigger, if any:  On March 5, foreign promoters Lake District Holdings, Partners Group ESCL, and Partners Group Private Equity sold stakes in the company.

Hilton Metal

Active names and traded stake: Raj Ratan Commodities Private Limited (0.6 percent)

Stock movement and volumes: The stock lost 0.4 percent to trade at Rs 160.3. Trading volumes at 63 lakh shares versus 1-month average of 3lakh shares

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

Fundamental trigger, if any: The company on February 9 announced its Q3FY24 earnings

GP Petroleum 

Active names and traded stake: Aakraya Research (0.64 percent), Graviton Research Capital (0.53 percent)

Stock movement and volumes: Stock lost 5.72 percent to Rs 80. Trading volumes at 83 lakh shares versus a one-week average of 13,000 shares.

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

Fundamental trigger, if any: No