High-frequency trading was seen in Jaiprakash Associates, Rico Auto Industries, and Rajshree Polypack on February 29. Rajshree Polypack scaled a 52-week high on hectic trading.
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 February 29:
Active names and traded stake: Mansi Share and Stock Advisors (1.33 percent), Setu Securities (1.05 percent), Multiplier Share and Stock Advisors (0.75 percent), Sahastraa Advisors (0.6 percent)
Stock movement and volumes: Lost 5.01 percent to Rs 19.9. Trading volumes at 26 crore shares versus 1-month average of 5 crore shares
Technicals: Stock is below 50-DMA and 200-DMA
Fundamental trigger, if any: No
Active names and traded stake: Graviton Research Capital (0.58 percent)
Stock movement and volumes: Gained 8.57 percent to Rs 103.25. Trading volumes at 1 crore shares versus 1-month average of 24 lakh shares
Technicals: Stock is above 50-DMA and 200-DMA
Fundamental trigger, if any: The company on February 7 announced its Q3FY24 results
Active names and traded stake: Jainam Broking (0.35 percent), Graviton Research Capital (0.33 percent), QE Securities (0.21 percent), Amit Kumar Jain HUF (0.21 percent), Sudhir Mehta HUF (0.27 percent)
Stock movement and volumes: Gained 17.46 percent to Rs 108.65. Trading volumes at 24 lakh shares versus 1-week average of 4 lakh sharesFundamental trigger, if any: The company on February 28 said that it is planning to raise funds
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