HFT Scan: Algo traders zoom in on Ramco Systems and Reliance Infrastructure

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 Ramco Systems, Reliance Infrastructure, and Sundaram Multi-Pap on April 12. Ramco Systems hit a 52-week high on April 12.

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 12:

Ramco Systems 

Active names and traded stake: QE Securities (1.21 percent), Graviton Research Capital (1.1 percent), NK Securities Research Private Limited (0.94 percent), Aakraya Research (0.88 percent)

Stock movement and volumes: Gained 16.27 percent to Rs 396.35. 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: No

Reliance Infrastructure 

Active names and traded stake: Mansi Share and Stock Advisors (0.65 percent)

Stock movement and volumes: Lost 13.12 percent to Rs 195.75. Trading volumes at 5 crore shares versus one-month average of 1 crore shares

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

Fundamental trigger, if any: No

Sundararam Multi-Pap

Active names and traded stake: HI Growth Corporate Services (1.71 percent), Citadel Securities India (0.98 percent), Jainam Broking (3.01 percent), Pace Commodity Brokers (2.22 percent)

Stock movement and volumes: Gained 4.55 percent to Rs 3.45. Trading volumes at 6 crore shares versus 1-week average of 89 lakh shares

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

Fundamental trigger, if any: No