High-frequency trading was active in BEML Limited, D-Link India Limited, and TruCap Finance on May 13. D-Link India Limited touched a 51-week high on May 13.
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, attract retail investors to these stocks.
Stocks where HFTs were active on May 13 :
BEML Limited
Active names and traded stake: Graviton Research Capital (0.61 percent)
Stock movement and volumes: Gained 14.53 percent to Rs 3,676.45. Trading volumes at 34 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 12 published its current order book details
D-Link India Limited
Active names and traded stake: Graviton Research Capital (1.41 percent), Mircocurves Trading Private Limited (1.39 percent), QE Securities (1.51 percent)
Stock movement and volumes: Gained 13.62 percent to Rs 387.5. Trading volumes at 93 lakh shares versus 1-month average of 8 lakh shares
Technicals: Stock is above 50-DMA and 200-DMA
Fundamental trigger, if any: The company on May 11 announced its Q4FY24 results
TruCap Fianance
Active names and traded stake: Jainam Broking (0.9 percent), HRTI Private Limited (0.37 percent)
Stock movement and volumes: Lost 5.97 percent to Rs 61.45. Trading volumes at 72 lakh shares versus 1-month average of 32 lakh shares
Technicals: Stock is above 50-DMA and 200-DMA
Fundamental trigger, if any: No
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