High-frequency trading firms on January 18 were active in Zee Media, South Indian Bank, and National Fertilisers Limited, making quick bucks by flipping trades in seconds. While South Indian Bank touched a 52-week high, Zee Media closed higher.
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 18:
Zee Media
Active names and traded stake: Graviton Research Capital (0.71 percent), HRTI Private Limited (1.1 percent), QE Securities (0.7 percent), Citadel Securities ( 0.58 percent)
Stock movement and volumes: Gained 3.76 percent to Rs 16.55. Trading volumes at 6 crore shares versus one-month average of 2 crore shares
Technicals: Stock is above 50-DMA and 200-DMA
Fundamental trigger, if any: No
South Indian Bank
Active names and traded stake: Graviton Research Capital (1 percent), HRTI Private Limited (1.07 percent)
Stock movement and volumes: Up 8.27 percent to Rs 30.75. Trading volumes at 30 crore shares versus one-month average of 6 crore shares
Technicals: Stock is above 50-DMA and 200-DMA
Fundamental trigger, if any: The company reported a net profit of Rs 305.6 crore for the October-December quarter, making a 197.42 percent jump YoY.
National Fertilisers Limited
Active names and traded stake: Graviton Research Capital (0.92 percent), HRTI Private Limited (0.62 percent)
Stock movement and volumes: Gained 2.99 percent to Rs 112. Trading volumes at 4 crore shares versus 1-month average of 2 crore shares
Technicals: Stock is above 50-DMA and 200-DMAFundamental trigger, if any: No
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.