High-frequency trading was active in Gujarat Mineral Development Corporation, Ircon International, and Rail Vikas Nigam Limited on July 8. Ircon International and Rail Vikas Nigam touched a 52-week high on July 8.
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 July 8 :
Gujarat Mineral Development Corporation
Active names and traded stake: Graviton Research Capital (0.59 percent)
Stock movement and volumes: Gained 5.08 percent to Rs 421.85. Trading volumes at 2 crore shares versus 1-month average of 21 lakh shares
Technicals: Stock is above 50-DMA and 200-DMA
Fundamental trigger, if any: No
Ircon International
Active names and traded stake: Graviton Research Capital (0.64 percent)
Stock movement and volumes: Gained 6.24 percent to Rs 326.25. Trading volumes at 8 crore shares versus 1-month average of 2 crore shares
Technicals: Stock is above 50-DMA and 200-DMA
Fundamental trigger, if any: No
Active names and traded stake: Graviton Research Capital (0.53 percent)
Stock movement and volumes: Gained 15.24 percent to Rs 565.9. Trading volumes at 19 crore shares versus 1-month average of 4 crore shares
Technicals: Stock is above 50-DMA and 200-DMA
Fundamental trigger, if any: No
Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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