High-frequency trading was active in PG Electroplast, Cochin Shipyard, and Haryana Leather Chemicals on May 23. PG Electroplast and Cochin Shipyard touched a 52-week high on May 23.
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 23 :
PG Electroplast
Active names and traded stake: Graviton Research Capital (0.59 percent)
Stock movement and volumes: Gained 5.13 percent to Rs 2502.3. Trading volumes at 15 lakh shares versus 1-month average of 2 lakh shares
Technicals: Stock is above 50-DMA and 200-DMA
Fundamental trigger, if any: The company on May 22 announced its Q4FY24 results
Active names and traded stake: Graviton Research Capital (0.52 percent)
Stock movement and volumes: Gained 15.73 percent to Rs 1890.2. Trading volumes at 2 crore shares versus 1-month average of 70 lakh shares
Technicals: Stock is above 50-DMA and 200-DMA
Fundamental trigger, if any: No
Haryana Leather Chemicals
Active names and traded stake: Multiplier Share and Stock Advisors (0.86 percent)
Stock movement and volumes: Lost 5 percent to Rs 101.72. Trading volumes at 1 lakh shares versus 1-month average of 11,000 shares
Technicals: Stock is above 50-DMA and 200-DMA
Fundamental trigger, if any: No
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