High-frequency trading was active in Vascon Engineers, Sawaca Business Machines, and Telogica Limited on April 30. All the 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 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 April 30 :
Vascon Engineers
Active names and traded stake: Crony Vyapar (1.15 percent)
Stock movement and volumes: Gained 4.04 percent to Rs 729.7. Trading volumes at 1 crore shares versus 1-month average of 26 lakh shares
Technicals: Stock is above 50-DMA and 200-DMA
Fundamental trigger, if any: No
Sawaca Business Machines
Active names and traded stake: Topgain Finance Private Limited (0.22 percent)
Stock movement and volumes: Gained 5 percent to Rs 1.25. Trading volumes at 28 lakh shares versus 1-month average of 8 lakh shares
Technicals: Stock is above 50-DMA and 200-DMA
Fundamental trigger, if any: No
Telogica Limited
Active names and traded stake: Multiplier Share and Stock Advisors (0.6 percent)
Stock movement and volumes: Gained 1.88 percent to Rs 18.97. Trading volumes at 3 lakh shares versus 1-month average of 18,000 shares
Technicals: Stock is above 50-DMA and 200-DMA
Fundamental trigger, if any: No
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