HFT Scan: Algo traders zoom in on GE Power India and Coffee Day Enterprises

High-frequency trading firms (HTFs) – or algo firms on steroids –use complex algorithms and powerful computers to execute trades at lightning speeds.

High-frequency traders were active in GE Power India, Coffee Day Enterprises, and Energy Development Limited counters on April 4. GE Power India scaled a 52-week high in trade.

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.

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The volumes generated by them, more often than not, attracts retail investors to these stocks.

Stocks where HFTs were active on April 4:

GE Power India
Active names and traded stake: Graviton Research Capital (0.58 percent)
Stock movement and volumes: Gained 4.16 percent to Rs 345.45. Trading volumes at 36 lakh shares versus 1-month average of 4 lakh shares
Technicals: Stock is above 50-DMA and 200-DMA
Fundamental trigger, if any: The company has bagged contracts from Jaiprakash Power Ventures Limited

Coffee Day Enterprises
Active names and traded stake: Graviton Research Capital (0.69 percent), HRTI Private Limited (0.9 percent)
Stock movement and volumes: Gained 9.5 percent to Rs 61.1. Trading volumes at 2 crore shares versus 1-month average of 42 lakh shares
Technicals: Stock is above 50-DMA and 200-DMA
Fundamental trigger, if any: No

Energy Development Limited
Active names and traded stake: Yuga Stocks and Commodities Limited (0.54 percent)
Stock movement and volumes: Gained 9.93 percent to Rs 29.35. Trading volumes at 19 lakh shares versus 1-week average of 1 lakh shares
Technicals: Stock is above 50-DMA and 200-DMAFundamental trigger, if any: No