High-frequency trading was active in Godfrey Phillips India, Kohinoor Foods, and EIH Associates Hotels on March 19. Kohinoor Foods and Godfrey Phillips 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.
Also read: Closing Bell: Nifty below 21,850, Sensex down 736 pts; all sectors in the red
Stocks where HFTs were active on March 19:
Godfrey Phillips India
Active names and traded stake: The Jupiter Global Fund (1.34 percent), Jupiter South Asia Investment Company (1.34 percent)
Stock movement and volumes: Lost 2.08 percent to Rs 3065.1. Trading volumes at 9 lakh shares versus 1-month average of 2 lakh shares
Technicals: Stock is above 50-DMA and 200-DMA
Fundamental trigger, if any: No
Kohinoor Foods
Acive names and traded stake: NK Securities Research Private Limited (0.57 percent), Mudupulavemu Reddy (0.58 percent)
Stock movement and volumes: Gained 5.26 percent to Rs 48. Trading volumes at 40 lakh shares versus 1-month average of 53,000 shares
Technicals: Stock is above 50-DMA and 200-DMA
Fundamental trigger, if any: The company on February 14 announced its Q3FY24 results
EIH Associates Hotels
Active names and traded stake: The Jupiter Global Fund (3.21 percent), Jupiter South Asia Investment Company (3.21 percent)
Stock movement and volumes: Gained 2.26 percent to Rs 679.5. Trading volumes at 10 lakh shares versus 1-week average of 44,000 shares
Technicals: Stock is above 50-DMA and 200-DMA
Fundamental trigger, if any: The Legal Metrology Department of Kerala on March 14 levied a fine of Rs.40,000 on Trident in CochinDisclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.