High-frequency trading was seen in Empower India, Captain Pipes, and Growington Ventures India on April 3. All the stocks closed lower.
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 April 3:
Empower India
Active names and traded stake: Multiplier Share and Stock Advisors Limited (2.01 percent), Avance Ventures Private Limited (1.02 percent)
Stock movement and volumes: Lost 4.66 percent to Rs 2.66. Trading volumes at 6 crore shares versus 1-month average of 27 lakh shares
Technicals: Stock is below its 50-DMA and above its 200-DMA
Fundamental trigger, if any: No
Captain Pipes
Acive names and traded stake: SKSE Securities Limited (0.94 percent)
Stock movement and volumes: Lost 5.3 percent to Rs 16.79. Trading volumes at 53 lakh shares versus 1-month average of 10 lakh shares
Technicals: Stock is below its 50-DMA and 200-DMA
Fundamental trigger, if any: The company has started construction of 87,000 square feet factory shed in Ahmedabad
Growington Ventures India
Active names and traded stake: Ramesh Vyas (0.54 percent)
Stock movement and volumes: Lost 0.3 percent to Rs 6.23
Technicals: Stock is below its 50-DMA and 200-DMAFundamental trigger, if any: No
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