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HFT Scan: Dish TV, MTNL, Subex see action

While Dish TV and Subex gained over 10 percent on January 5, Snowman ended one percent higher and MTNL closed one percent lower

January 08, 2024 / 05:47 IST
High-frequency trading firms (HTFs) use complex algorithms and powerful computers to execute trades at lightning speeds
     
     
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    High-frequency trading firms were particularly active in Dish TV, MTNL, Subex and Snowman Logistics, making some quick bucks by flipping trades in seconds on January 5. While Dish TV and Subex gained over 10 percent, Snowman ended 1 percent higher and MTNL closed 1 percent 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, attracts retail investors to these stocks.

    Stocks where HFTs were active on January 5:

    Dish TV

    Active names and traded stake: HRTI Pvt Ltd (1.1 percent), Graviton Research (1.03 percent), Citadel Securities (0.8 percent), QE Securities (0.6 percent) and Jainam Broking (0.3 percent).

    Stock movement and volumes: Gained 11 percent to Rs 21.65. Trading volumes at 27 crore shares versus one-month average of 7 crore shares

    Technicals: Stock is above 50-DMA and 200-DMA

    Fundamental trigger, if any: Over a week back shareholders had voted out the company's entire board.

    MTNL

    Active names and traded stake: QE Securities (0.2 percent), HRTI (0.5 percent), Graviton (0.3 percent)

    Stock movement and volumes: Fell 1.4 percent to Rs 35.20. Trading volumes at 3 crore shares versus 1-month average of 1 crore shares

    Technicals: Stock is above 50-DMA and 200-DMA

    Fundamental trigger, if any: No

    Subex

    Active names and traded stake: HRTI Pvt Ltd (1.1 percent), Graviton Research (1.2 percent), Citadel Securities (0.6 percent), QE Securities (0.4 percent) and Jainam Broking (0.7 percent)

    Stock movement and volumes: Gained 14.6 percent to Rs 39.05. Trading volumes at 11 crore shares versus 1-month average of 2 crore shares

    Technicals: Stock is above 50-DMA and 200-DMA

    Fundamental trigger, if any: No

    Snowman Logistics

    Active names and traded stake: HRTI Pvt Ltd (0.6 percent), Graviton Research (0.6 percent)

    Stock movement and volumes: Gained 1.3 percent to Rs 67.90. Trading volumes at 74 lakh shares versus 1-month average of 33 lakh shares

    Technicals: Stock is above 50-DMA and 200-DMA

    Fundamental trigger, if any: Company opened new facility in North East India, a few days back, expanding operations.

    Shailaja Mohapatra Senior sub-editor, Moneycontrol
    first published: Jan 8, 2024 05:43 am

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