High-frequency trading was active in Texmaco Infrastructure and Holdings, Parag Milk Foods, and Garden Reach Shipbuilders and Engineers on May 21. Garden Reach Shipbuilders and Engineers touched a 52-week high on May 21.
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, attract retail investors to these stocks.
Stocks where HFTs were active on May 21 :
Texmaco Infrastructure and Holdings
Active names and traded stake: Graviton Research Capital (0.61 percent)
Stock movement and volumes: Gained 2.19 percent to Rs 198.75. Trading volumes at 72 lakh shares versus 1-month average of 22 lakh shares
Technicals: Stock is above 50-DMA and 200-DMA
Fundamental trigger, if any: The company on May 14 announced its Q4FY24 results
Parag Milk Foods
Active names and traded stake: Graviton Research Capital (0.57 percent)
Stock movement and volumes: Lost 13.7 percent to Rs 185.2. Trading volumes at 70 lakh shares versus 1-month average of 11 lakh shares
Technicals: Stock is above 50-DMA and 200-DMA
Fundamental trigger, if any: The company on May 18 announced its Q4FY24 results
Garden Reach Shipbuilders and Engineers
Active names and traded stake: Graviton Research Capital (0.64 percent)
Stock movement and volumes: Gained 7.4 percent to Rs 1213.25. Trading volumes at 69 lakh shares versus 1-month average of 24 lakh shares
Technicals: Stock is above 50-DMA and 200-DMA
Fundamental trigger, if any: No
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