High-frequency trading was active in Bombay Dyeing and Manufacturing Company, Peninsula Land, and Associate Alcohols and Breweries. Peninsula Land and Associate Alcohols and Breweries touched a 52-week high.
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 May 15 :
Bombay Dyeing and Manufacturing Company
Active names and traded stake: Graviton Research Capital (0.56 percent)
Stock movement and volumes: Gained 10.82 percent to Rs 184.8. Trading volumes at 1 crore shares versus 1-month average of 16 lakh shares
Technicals: Stock is above 50-DMA and 200-DMA
Fundamental trigger, if any: The company on May 6 announced its Q4FY24 resultsPeninsula Land
Active names and traded stake: Graviton Research Capital (0.54 percent), Crony Vyapar (1.63 percent)
Stock movement and volumes: Lost 7.03 percent to Rs 65.45. Trading volumes at 2 crore shares versus 1-month average of 40 lakh shares
Technicals: Stock is above 50-DMA and 200-DMA
Fundamental trigger, if any: NoAssociate Alcohols and Breweries
Active names and traded stake: Graviton Research Capital (0.94 percent)
Stock movement and volumes: Gained 8.91 percent to Rs 607.2. Trading volumes at 17 lakh shares versus 1-month average of 81 lakh shares
Technicals: Stock is above 50-DMA and 200-DMAFundamental trigger, if any: No