High frequency trading firms on February 6 zoomed in on Sakthi Sugars, Shriram Properties, and FCS Software, making money rapidly by flipping trades in seconds. Shriram Properties touched a 52-week high during the day.
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 February 6:
Sakthi Sugars
Active names and traded stake: Graviton Research Capital (0.54 percent)
Stock movement and volumes: Gained 6.07 percent to Rs 33.2. Trading volumes at 60 lakh shares versus 1-month average of 14 lakh shares
Technicals: Stock is above 50-DMA and 200-DMA
Fundamental trigger, if any: The company will announce its Q3FY24 results on February 12
Shriram Properties
Active names and traded stake: Graviton Research Capital (0.73 percent)
Stock movement and volumes: Gained 7.37 percent to Rs 138.45. Trading volumes at 1 crore shares versus 1-month average of 44 lakh shares
Technicals: Stock is above 50-DMA and 200-DMA
Fundamental trigger, if any: The company will announce its Q3FY24 results on February 14
FCS Software
Active names and traded stake: Ankita Vishal Shah (0.94 percent)
Stock movement and volumes: Gained 3.31 percent to Rs 6.25. Trading volumes at 12 crore shares versus 1-month average of 5 crore shares
Technicals: Stock is above 50-DMA and 200-DMAFundamental trigger, if any: No
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