High-frequency traders were active in Hindustan Motors, Geojit Financial Services, and Paras Defense and Space Technologies counters on April 24. Hindustan Motors and Geojit Financial scaled a 52-week high on April 24.
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 April 24:
Hindustan Motors
Active names and traded stake: Share India Securities (0.81 percent), Jainam Broking (0.57 percent), Setu Securties (0.56 percent)
Stock movement and volumes: Lost 6.73 percent to Rs 29.1. Trading volumes at 4 crore shares versus 1-month average of 80 lakh shares
Technicals: The stock is above 50-DMA and 200-DMA
Fundamental trigger, if any: No
Geojit Financial Services
Active names and traded stake: Graviton Research Capital (0.61 percent)
Stock movement and volumes: Gained 11.42 percent to Rs 94.65. Trading volumes at 1 crore shares versus 1-month average of 17 lakh shares
Technicals: Stock is above 50-DMA and 200-DMA
Fundamental trigger, if any: The company on April 30 will announce its annual results
Paras Defense and Space Technologies
Active names and traded stake: Graviton Research Capial (0.55 percent)
Stock movement and volumes: Gained 2.82 percent to Rs 757.15. Trading volumes at 19 lakh shares versus 1-month average of 4 lakh shares
Technicals: Stock is above 50-DMA and 200-DMAFundamental trigger, if any: No
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