High-frequency trading was active in GAIL India, Fortis Malar Hospital, and Anupam Rasayan India on June 6. GAIL India shares closed 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 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 6:
GAIL India
Active names and traded stake: BOFA Securities Europe SA (0.03 percent)
Stock movement and volumes: Gained 6.53 percent to Rs 207.9. Trading volumes at 5 crore shares versus 1-month average of 3 crore shares
Technicals: Stock is above 50-DMA and 200-DMA
Fundamental trigger, if any: No
Fortis Malar Hospital
Active names and traded stake: Sahastraa Advisors Private Limited (0.8 percent)
Stock movement and volumes: Lost 1.99 percent to Rs 56.13. Trading volumes at 3 lakh shares versus 1-month average of 32,000 shares
Technicals: Stock is above 50-DMA and 200-DMA
Fundamental trigger, if any: No
Active names and traded stake: Jainam Broking (0.67 percent)
Stock movement and volumes: Lost 0.39 percent to Rs 771.17. Trading volumes at 9 lakh shares versus 1-month average of 1 lakh shares
Technicals: Stock is below 50-DMA and 200-DMA
Fundamental trigger, if any: No
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