High-frequency trading was seen in the counters of GOCL Corporation, GM Breweries, and Zenith Drugs on April 1. All the stocks 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.
Also read: Trade setup for Tuesday: 15 things to know before opening bell
The volumes generated by them, more often than not, attracts retail investors to these stocks.
Stocks where HFTs were active on April 1:
GOCL Corporation
Active names and traded stake: Graviton Research Capital (0.63 percent)
Stock movement and volumes: Gained 3.84 percent to Rs 47.2.05. Trading volumes at 25 lakh shares versus 1-month average of 2 shares
Technicals: Stock is above 50-DMA and 200-DMA
Fundamental trigger, if any: The company signed an initial deal with a Hyderabad-based company to start monetisation of a prime land in Kukatpally for Rs 3,402 crores
GM Breweries
Acive names and traded stake: Graviton Research Capital (0.53 percent)
Stock movement and volumes: Gained 12.81 percent to Rs 715.2. Trading volumes at 8 lakh shares versus one-month average of 38,000 shares
Technicals: Stock is above 50-DMA and 200-DMA
Fundamental trigger, if any: The company on April 1 said that it will consider issuing bonus shares in its next meeting
Zenith Drugs
Active names and traded stake: Yuga Stocks and Commodities Limited (2.2 percent)
Stock movement and volumes: Gained 4.63 percent to Rs 65.6. Trading volumes at 8 lakh shares versus one-week average of 2 lakh shares
Technicals: No dataFundamental trigger, if any: No
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.