High-frequency trading was active in Bajaj Hindusthan Sugar and IRB Infrastructure Developers. Bajaj Hindusthan Sugar closed higher while IRB Infrastructure closed lower on June 11.
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 11:
Active names and traded stake: Graviton Research Capital (0.6 percent), HRTI Private Limited (0.74 percent)
Stock movement and volumes: Gained 9.08 percent to Rs 36.27. Trading volumes at 8 crore shares versus 1-month average of 2 crore shares
Technicals: Stock is above 50-DMA and 200-DMA
Fundamental trigger, if any: No
Active names and traded stake: Mansi Share and Stock Advisors (1.04 percent), HRTI Private Limited (0.53 percent), F3 Advisors (0.52 percent)
Stock movement and volumes: Lost 5.76 percent to Rs 66.12. Trading volumes at 97 crore shares versus 1-month average of 4 crore shares
Technicals: Stock is below 50-DMA and 200-DMA
Fundamental trigger, if any: Cintra INR Investments BV on June 11 sold a 5 percent stake in IRB Infrastructure
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