High-frequency trading was active in NBCC (India) and Sakuma Exports on July 4. NBCC (India) touched a 52-week high on July 4 and Sakuma Exports touched a 52-week low on July 4.
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 4 :
NBCC (India)
Active names and traded stake: Graviton Research Capital (0.51 percent)
Stock movement and volumes: Gained 10.4 percent to Rs 186.68. Trading volumes at 15 crore shares versus 1-month average of 4 crore shares
Technicals: Stock is above 50-DMA and 200-DMA
Fundamental trigger, if any: The company on July 4 received a work order of Rs 36 crore from National Institute of Technology, Patna.
Sakuma Exports
Active names and traded stake: Graviton Research Capital (0.87 percent), HRTI Private Limited (2.38 percent), QE Securities (0.75 percent)
Stock movement and volumes: Gained 0.84 percent to Rs 31.38. Trading volumes at 7 crore shares versus 1-month average of 3 crore shares
Technicals: Stock is above 50-DMA and 200-DMA
Fundamental trigger, if any: No
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