High-frequency trading was active in Coforge Limited, Rane Brake Lining Limited, and Ugro Capital on May 3, with Rane closing higher.
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 have recently 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 3 :
Coforge Limited
Active names and traded stake: Graviton Research Capital (0.56 percent)
Stock movement and volumes: Lost 10.09 percent to Rs 4482.55. Trading volumes at 52 lakh shares versus 1-month average of 6 lakh shares
Technicals: Stock is below 50-DMA and 200-DMA
Fundamental trigger, if any: The company on May 2 announced its Q4FY24 results
Rane Break Linings Limited
Active names and traded stake: NK Securities Research Limited (1.14 percent), Graviton Research Limited (0.84 percent), QE Securities (0.52 percent)
Stock movement and volumes: Gained 20 percent to Rs 1,021.4. Trading volumes at 18 lakh shares versus 1-month average of 1 lakh shares
Technicals: Stock is below 50-DMA and 200-DMA
Fundamental trigger, if any: No
Ugro Capital
Active names and traded stake: Graviton Research Capital (0.52 percent)
Stock movement and volumes: Gained 0 percent at Rs 282.8. Trading volumes at 41 lakh shares versus 1-month average of 6 lakh shares
Technicals: Stock is above 50-DMA and 200-DMA
Fundamental trigger, if any: The company on May 3 announced its Q4FY24 results
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