High-frequency traders was active in Som Distilleries and Breweries, Kirloskar Electric Company, and Yug Decor Limited on April 26.
Som Distilleries and Breweries and Yug Decor ended lower while Kirloskar Electric Company gained on the day.
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 26:
Som Distilleries and Breweries
Active names and traded stake: Graviton Research Capital (0.6 percent).
Stock movement and volumes: Lost 2.63 percent to Rs 329.4. Trading volumes at 39 lakh shares versus one-month average of 13 lakh shares.
Technicals: Stock is above 50-DMA and 200-DMA.
Fundamental trigger, if any: The company on April 27 announced its Q4FY24 results.
Kirloskar Electric Company
Acive names and traded stake: Graviton Research Capital (0.61 percent).
Stock movement and volumes: Gained 10.3 percent to Rs 130.6. Trading volumes at 36 lakh shares versus 1-month average of 6 lakh shares.
Technicals: Stock is above 50-DMA and 200-DMA.
Fundamental trigger, if any: No
Yug Decor
Acive names and traded stake: Kailashben Ashokkumar Patel (0.47 percent).
Stock movement and volumes: Lost 4.99 percent to Rs 41.55. Trading volumes at 94,000 shares versus one-month average of 31,000 shares.
Technicals: Stock is below 50-DMA and 200-DMA.
Fundamental trigger, if any: No
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