High-frequency trading was active in Andhra Sugars, Dhampur Sugar Mills, and Dwarikesh Sugar Industries on June 13. All the stocks closed higher on June 13.
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 June 13:
Andhra Sugars
Active names and traded stake: Graviton Research Capital (0.88 percent), HRTI Private Limited (0.62 percent)
Stock movement and volumes: Gained 9.21 percent to Rs 124.4. Trading volumes at 1 crore shares versus 1-month average of 6 lakh shares
Technicals: Stock is below 50-DMA and 200-DMA
Fundamental trigger, if any: No
Dhampur Sugar Mills
Active names and traded stake: Graviton Research Capital (0.64 percent)
Stock movement and volumes: Gained 5.41 percent to Rs 249.8. Trading volumes at 45 lakh shares versus 1-month average of 3 lakh shares
Technicals: Stock is above 50-DMA and 200-DMA
Fundamental trigger, if any: No
Dwarikesh Sugar Industries
Active names and traded stake: Graviton Research Capital (1.02 percent), QE Securities (o.52), HRTI Private Limited (1.02 percent)
Stock movement and volumes: Gained 5.01 percent to Rs 78.43. Trading volumes at 2 crore shares versus 1-month average of 10 lakh shares
Technicals: Stock is below 50-DMA and 200-DMA
Fundamental trigger, if any: No
