High-frequency trading was active in Amara Raja Energy and Mobility, Atul Auto, and Happiest Minds Technologies on June 25. Amara Raja Energy and Mobility touched a 52-week high on June 25.
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 June 25:
Amara Raja Energy and Mobility
Active names and traded stake: NK Securities Private Limited (0.71 percent), HRTI Private Limited (0.5 percent)
Stock movement and volumes: Gained 19.29 percent to Rs 1646.2. Trading volumes at 2 crore shares versus 1-month average of 40 lakh shares
Technicals: Stock is above 50-DMA and 200-DMA
Fundamental trigger, if any: The company's subsidiary on June 24 has signed a technical licensing agreement with GIB EnergyX Slovakia, which will enable the company to manufacture world class LFP cells
Atul Auto
Active names and traded stake: Graviton Research Capital (0.82 percent), Paritosh Rungta (0.54 percent)
Stock movement and volumes: Gained 10.68 percent to Rs 603.65. Trading volumes at 33 lakh shares versus 1-month average of 2 lakh shares
Technicals: Stock is above 50-DMA and 200-DMA
Fundamental trigger, if any: No
Happiest Minds Technologies
Active names and traded stake: Mansi Share and Stock Advisors Limited (0.61 percent), QE Securities (0.5 percent)
Stock movement and volumes: Lost 9.46 percent to Rs 830.55. Trading volumes at 3 crore shares versus 1-month average of 11 lakh shares
Technicals: Stock is below 50-DMA and 200-DMA
Fundamental trigger, if any: Promoter Ashok Soota sold a 6 percent stake or around 9.13 lakh shares in Happiest Minds Technologies at a price of Rs 834.87 per share
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