High-frequency trading was active in Titagarh Rail Systems, BF Utilities, and Roto Pumps on May 16 as these stocks closed higher.
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 have recently 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 16 :
Titagarh Rail Systems
Active names and traded stake: Graviton Research Capital (0.71 percent)
Stock movement and volumes: Gained 8.97 percent to Rs 1,212.4. Trading volumes at 1 crore 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 16 announced its Q4FY24 results
BF Utilities
Active names and traded stake: Graviton Research Capital (0.66 percent)
Stock movement and volumes: Gained 7.56 percent to Rs 916.6. Trading volumes at 27 lakh shares versus 1-month average of 7 lakh shares
Technicals: Stock is above 50-DMA and 200-DMA
Fundamental trigger, if any: No
Roto Pumps
Active names and traded stake: Graviton Research Capital (0.84 percent)
Stock movement and volumes: Gained 8.71 percent to Rs 455.35. Trading volumes at 28 lakh shares versus 1-month average of 3 lakh shares
Technicals: Stock is above 50-DMA and 200-DMA
Fundamental trigger, if any: No
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