HFT Scan: L&T and Indus Towers in focus of algo traders

High-frequency trading firms (HTFs) – or algo firms on steroids –use complex algorithms and powerful computers to execute trades at lightning speeds.

High frequency trading firms were active in L&T, Indus Towers, and India Cements making some fast money by flipping trades in seconds on February 1. All the stocks closed 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 February 1:

Larsen & Toubro

Active names and traded stake: Jupiter Global Fund (0.02 percent)

Stock movement and volumes: Lost 2.35 percent to Rs 3398. Trading volumes at 66 lakh shares versus 1-month average of 23 lakh shares

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

Fundamental trigger, if any: The company reported a 19 percent YoY growth in revenue in Q3FY24 in the October-to-December quarter.

Indus Towers

Active names and traded stake: Patronus Tradetech (0.57 percent)

Stock movement and volumes: Lost 1.58 percent to Rs 218.45. Trading volumes at 41 crore shares versus 1-month average of 2 crore shares

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

Fundamental trigger, if any: The company on January 23 reported a 6 percent increase in revenues in Q3FY24.

India Cements 

Active names and traded stake: Graviton Research Capital (1.26 percent), HRTI Private Limited (0.68 percent), Surjective Research Capital(0.5 percent)

Stock movement and volumes: Lost 7.35 percent to Rs 242.2. Trading volumes at 4 crore shares versus 1-month average of 57 lakh shares

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

Fundamental trigger, if any: No