High-frequency trading firms were active in Ashoka Buildcon, Ease My Trip, Zee Media along with some more stocks, making a quick buck by flipping trades in seconds on January 9. Ashoka Buildcon touched a 52-week high, while Zee Media closed lower.
The 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 January 9:
Active names and traded stake: Graviton Research Capital (1.03 percent), Citadel Securities (0.14 percent)
Stock movement and volumes: Gained 12.67 percent to Rs 161.85. Trading volumes at 3 crore shares versus 1-month average of 28 lakh shares
Technicals: Stock is above 50-DMA and 200-DMA
Fundamental trigger, if any: No
Active names and traded stake: HRTI Private Limited (0.6 percent), Jainam Broking (0.56 percent)
Stock movement and volumes: Up 5.65 percent to Rs 45.8. Trading volumes at 15 crore shares versus 1-month average of 3 crore shares
Technicals: Stock is above 50-DMA and 200-DMA
Fundamental trigger, if any: Suspended all-flight bookings to Maldives after the three deputy ministers from Maldives criticised PM Narendra Modi for his visit to Lakshadweep.
Also Read: Moody's downgrades rating on senior unsecured bonds issues by Vedanta Resources
Active names and traded stake: HRTI Limited (1.2 percent), Citadel Securities (0.16 percent), Graviton (0.9 percent), QE Securities (0.5 percent)
Stock movement and volumes: Lost 7.14 percent to Rs 16.25. Trading volumes at 7 crore shares versus 1-month average of 2 crore shares
Technicals: Stock is above 50-DMA and 200-DMA
Fundamental trigger, if any: Zee Media clarified that reports on the Zee-Sony deal being called off are factually incorrect.
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