High frequency trading firms on February 12 were active in Easy Trip Planners, Dish TV India, and Orient Press making a quick buck by flipping trades in seconds. Easy Trip Planners and Orient Press closed lower.
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, attract retail investors to these stocks.
Stocks where the HFTs were active on February 12:
Easy Trip PlannersActive names and traded stake: HRTI Private Limited (0.53 percent)
Stock movement and volumes: Lost 4.31 percent to Rs 48.9. Trading volumes at 8 crore shares versus 1-month average of 4 crore shares
Technicals: Stock is above 50-DMA and 200-DMA
Fundamental trigger, if any: The company entered into a joint venture to start a 5-star hotel in Ayodhya
Active names and traded stake: HRTI Private Limited (0.57 percent)
Stock movement and volumes: Lost 10.48 percent to Rs 19.65. Trading volumes at 10 crore shares versus 1-month average of 7 crore shares
Technicals: Stock is above 50-DMA and 200-DMA
Fundamental trigger, if any: The company on February 9 announced its Q3FY24 results
Orient PressActive names and traded stake: NK Securities (0.59 percent)
Stock movement and volumes: Gained 19.98 percent to Rs 131.2. Trading volumes at 11 lakh shares versus 1-month average of 2 lakh shares
Technicals: Stock is above 50-DMA and 200-DMA
Fundamental trigger, if any: No
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