High frequency trading firms on January 29 were active in Vakrangee Limited, Urja Global, and Shemaroo Entertainment making a quick buck by flipping trades in seconds. Urja Global and Shemaroo Entertainment touched 52-week highs.
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 January 29:
Vakrangee Limited
Active names and traded stake: HRTI Private Limited (1.48 percent), Graviton Research Capital (1.16 percent)
Stock movement and volumes: Gained 7.44 percent to Rs 24.55. Trading volumes at 14 crore shares versus 1-month average of 3 crore shares
Technicals: Stock is above 50-DMA and 200-DMA
Fundamental trigger, if any: The company on December 18 had entered into a share purchase agreement for acquisition of 8.8 percent equity share capital of Vortex Engineering Private Limited.
Urja Global
Active names and traded stake: Mansi Share and Stock Advisors (2.28 percent), Graviton Research Capital (0.53 percent)
Stock movement and volumes: Gained 20 percent to Rs 28.5. Trading volumes at 9 crore shares versus 1-month average of 4 crore shares
Technicals: Stock is above 50-DMA and 200-DMA
Fundamental trigger, if any: The company will announce its Q3FY24 results on January 30.
Shemaroo Entertainment Active names and traded stake: Graviton Research Capital (1.16 percent)
Stock movement and volumes: Gained 2.51 percent to Rs 229. Trading volumes at 24 crore shares versus 1-month average of 7 crore shares
Technicals: Stock is above 50-DMA and 200-DMA
Fundamental trigger, if any: No
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