High-frequency trading was active in Kokuyo Camlin, Retro Green Revolution, and Sonalis Consumer Products on May 8. Sonalis Consumer Products closed lower.
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 8 :
Kokuyo Camlin
Active names and traded stake: Crony Vyapar (0.51 percent).
Stock movement and volumes: Gained 0.42 percent to Rs 166.05. Trading volumes at 28 lakh shares versus 1-month average of 9 lakh shares.
Technicals: Stock is below 50-DMA and 200-DMA.
Fundamental trigger, if any: The company will announce its results May 15.
Retro Green Revolution
Active names and traded stake: Amit Kumar HUF (0.7 percent), Aakash Goyal (0.71 percent), Jay Vinayak Securities (0.7 percent).
Stock movement and volumes: Gained 17.26 percent to Rs 13.25. Trading volumes at 11 lakh shares versus 1-month average of 2 lakh shares.
Technicals: Stock is above 50-DMA and 200-DMA.
Fundamental trigger, if any: No
Sonalis Consumer Products
Active names and traded stake: Multiplier Share and Stock Advisors (1.2 percent).
Stock movement and volumes: Lost 4.99 percent to Rs 61.92. Trading volumes at 72,000 shares versus 1-month average of 51,000 shares.
Technicals: Stock is above 50-DMA and 200-DMA.
Fundamental trigger, if any: No
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