High-frequency trading was active in J Kumar Infraprojects, Praj Industries, and New Delhi Television Limited on May 31. J Kumar Infraprojects touched a 52-week high on May 31.
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 May 31:
J Kumar Infraprojects
Active names and traded stake: Graviton Research Capital (0.86 percent), QE Securities (0.52 percent)
Stock movement and volumes: Gained 13.91 percent to Rs 755.75. Trading volumes at 78 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 28 announced its Q4FY24 results
Praj Industries
Active names and traded stake: Graviton Research Capital (0.51 percent)
Stock movement and volumes: Gained 4.21 percent to Rs 522.05. Trading volumes at 91 lakh shares versus 1-month average of 10 lakh shares
Technicals: Stock is below 50-DMA and 200-DMA
Fundamental trigger, if any: The company on May 30 announced its Q4FY24 resultsNew Delhi Television Limited
Active names and traded stake: Graviton Research Capital (0.53 percent)
Stock movement and volumes: Gained 7.81 percent to Rs 247.9. Trading volumes at 28 lakh shares versus 1-month average of 6 lakh shares
Technicals: Stock is above 50-DMA and 200-DMA
Fundamental trigger, if any: No
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