High-frequency trading was active in Sula Vineyards, Tijaria Polypipes, and Coffee Day Enterprises on February 19. Sula Vineyards and Coffee Day Enterprises closed lower.
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 February 19 were:
Active names and traded stake: F3 Advisors Private Limited (1.12 percent), Mansi Share and Stock Advisors (1.02 percent), QE Securities (0.74 percent), Setu Securities (0.41 percent)
Stock movement and volumes: Lost 7.85 percent to Rs 5,69.1. Trading volumes at 3 crore shares versus 1-month average of 21 lakh shares
Technicals: Stock is below 50-DMA and 200-DMA
Fundamental trigger, if any: Verlinvest Asia PTE sold its 8.34-percent stake in the company on February 19
Active names and traded stake: Setu Securities (2.01 percent)
Stock movement and volumes: Gained 9.85 percent to Rs 7.25. Trading volumes at 34 lakh shares versus 1-month average of 7 lakh shares
Technicals: Stock is above 50-DMA and 200-DMA
Fundamental trigger, if any: The company on February 10 announced its Q3FY24 results
Active names and traded stake: HRTI Private Limited (1.53 percent), Graviton Research Capital (0.8 percent)
Stock movement and volumes: Lost 6.66 percent to Rs 63.8. Trading volumes at 3 crore shares versus 1-week average of 1 crore shares
Technicals: Stock is above 50-DMA and 200-DMA
Fundamental trigger, if any: No
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