High-frequency trading was active in Nazara Technologies, Astra Microwave Products, and Parle Industries on May 27. Nazara Technologies touched a 52-week low while Astra Microwave touched a 52-week high on May 27.
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 27 :
Nazara Technologies
Active names and traded stake: Graviton Research Capital (0.57 percent)
Stock movement and volumes: Gained 9.47 percent to Rs 672.55. Trading volumes at 85 lakh shares versus 1-month average of 2 lakh shares
Technicals: Stock is below 50-DMA and 200-DMA
Fundamental trigger, if any: Promoter Infotech LLP sold a 6.38 percent stake in Nazara Technologies on May 27
Astra Microwave Products
Active names and traded stake: Graviton Research Capital (0.74 percent)
Stock movement and volumes: Gained 9.68 percent to Rs 877.45. Trading volumes at 76 lakh shares versus 1-month average of 5 lakh shares
Technicals: Stock is above 50-DMA and 200-DMA
Fundamental trigger, if any: The company on May 24 reported over four-fold jump in its net profit during the March quarter of FY24
Parle Industries
Active names and traded stake: Green Peaks Enterprises (0.65 percent)
Stock movement and volumes: Gained 4.92 percent to Rs 12.16. Trading volumes at 4 lakh shares versus 1-month average of 5 lakh shares
Technicals: Stock is above 50-DMA and 200-DMA
Fundamental trigger, if any: No
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