HFT Scan: Railtel Corporation, Swan Energy witness heavy trading

High-frequency trading was active in Railtel Corporation of India, AVG Logistics, and Swan Energy on February 27. All the stocks touched a five-week high.

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 February 27:

Railtel Corporation of India Active names and traded stake: QE Securities (0.57 percent), Graviton Research Capital (0.68 percent) Stock movement and volumes: Gained 10.62 percent to Rs 469.25. Trading volumes at 5 crore shares versus 1-month average of 98 lakh shares Technicals: Stock is above 50-DMA and 200-DMA| Fundamental trigger, if any: No

AVG Logistics Active names and traded stake: Graviton Research Capital (0.46 percent) Stock movement and volumes: Lost 1.28 percent to Rs 614.5. Trading volumes at 12 lakh shares versus 1-month average of 3 lakh shares Technicals: Stock is above 50-DMA and 200-DMA Fundamental trigger, if any: Company allotted 3,00,000 convertible warrants to promoter and 5,05,000 convertible warrants to non-promoters on February 27

Swan Energy Active names and traded stake:  Jainam Broking (0.89 percent) Stock movement and volumes: Gained 3.24 percent to Rs 753.25. Trading volumes at 74 lakh shares versus 1-week average of 58 lakh shares Technicals: Stock is above 50-DMA and 200-DMA Fundamental trigger, if any: The company on February will consider and determine the issue price for the equity shares to be allotted to qualified institutional buyers