High-frequency trading was active in Atul Auto, Geojit Financial Services, and TVS Electronics on May 2. Geojit Financial Services touched a 52-week high on May 2.
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 May 2 :
Atul Auto
Active names and traded stake: Graviton Research Capital (0.84 percent), QE Securities (o.69 percent), NK Securities (o.6 percent)
Stock movement and volumes: Gained 13.01 percent to Rs 595.6. Trading volumes at 43 lakh shares versus 1-month average of 4 lakh shares
Technicals: Stock is above 50-DMA and 200-DMA
Fundamental trigger, if any: The company on May 1 announced its sales number
Active names and traded stake: Graviton Research Capital (0.78 percent)
Stock movement and volumes: Gained 10.4 percent to Rs 106.65. Trading volumes at 2 crore shares versus 1-month average of 31 lakh shares
Technicals: Stock is above 50-DMA and 200-DMA
Fundamental trigger, if any: The company on April 30 announced its Q4FY24 results
Active names and traded stake: NK Securities (o.56 percent), Graviton Research Capital (0.72 percent), Mansi Share and Stock Advisors (1.66 percent)
Stock movement and volumes: Gained 19.37 percent to Rs 360.85. Trading volumes at 45 lakh shares versus 1-month average of 3 lakh shares
Technicals: Stock is above 50-DMA and 200-DMA
Fundamental trigger, if any: No
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