High frequency trading firms were active in Entertainment Network India Limited, Birla Cable Limited, and KCL Infra making some money by flipping trades in seconds on February 8. Entertainment Network India Limited was the top gainer.
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 February 8:
Entertainment Network India Limited
Active names and traded stake: Graviton Research Capital (0.68 percent)
Stock movement and volumes: Gained 2.53 percent to Rs 298.6. Trading volumes at 7 lakh shares versus 1-month average of 6 lakh shares
Technicals: Stock is above 50-DMA and 200-DMA
Fundamental trigger, if any: The company on February 13 will announce its Q3FY24 results
Birla Cable
Active names and traded stake: Graviton Research Capital (0.88 percent)
Stock movement and volumes: Lost 4.13 percent to Rs 318.05. Trading volumes at 8 lakh shares versus 1-month average of 3 lakh shares
Technicals: Stock is above 50-DMA and 200-DMA
Fundamental trigger, if any: The company on February 2 posted a 19 percent YoY fall in revenue in Q3FY24
KCL Infra
Active names and traded stake: Autonomy Homes Private Limited (2.76 percent), Setu Securities Private Limited (2.02 percent), Multiplie Share and Stock Advisors Limited (3.77 percent)
Stock movement and volumes: Lost 9.73 percent to Rs 2.32. Trading volumes at 1 crore shares versus 1-month average of 40 lakh shares
Technicals: Stock is below 50-DMA and 200-DMAFundamental trigger, if any: No
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