High-frequency traders were active in VIP Industries, Grasim Industries, and Dynacons Systems and Solutions on March 28. Grasim Industries touched a 52-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.
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The volumes generated by them, more often than not, attracts retail investors to these stocks.
Stocks where HFTs were active on March 28:
VIP Industries
Active names and traded stake: Graviton Research Capital (0.8 percent), QE Securities (0.96 percent)
Stock movement and volumes: Gained 12.89 percent to Rs 525.5. Trading volumes at 2 crore shares versus 1-month average of 19 lakh shares
Technicals: Stock is below 50-DMA and 200-DMA
Fundamental trigger, if any: No
Grasim Industries
Active names and traded stake: BOFA Securities Europe SA (0.1 percent)
Stock movement and volumes: Gained 3.63 percent to Rs 2287.3. Trading volumes at 25 lakh shares versus 1-month average of shares 9 lakh shares
Technicals: Stock is above 50-DMA and 200-DMA
Fundamental trigger, if any: No
Dynacons Systems and Solutions
Active names and traded stake: QE Securities (0.64 percent), Graviton Research Capital (0.64 percent), Aakraya Research (0.81 percent), NK Securities (0.68 percent)
Stock movement and volumes: Gained 9.68 percent to Rs 1027.8. Trading volumes at 20 lakh shares versus 1-week average of 2 lakh shares
Technicals: Stock is above 50-DMA and 200-DMAFundamental trigger, if any: No
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