HFT Scan: Jaiprakash Associates, Rico Auto in focus of algo traders

About this update from Rico Auto Industries Limited

High-frequency trading was seen in Jaiprakash Associates, Rico Auto Industries, and Rajshree Polypack on February 29. Rajshree Polypack scaled a 52-week high on hectic trading.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 February 29:Jaiprakash Associates Active names and traded stake: Mansi Share and Stock Advisors (1.33 percent), Setu Securities (1.05 percent), Multiplier Share and Stock Advisors (0.75 percent), Sahastraa Advisors (0.6 percent)Stock movement and volumes: Lost 5.01 percent to Rs 19.9. Trading volumes at 26 crore shares versus 1-month average of 5 crore sharesTechnicals: Stock is below 50-DMA and 200-DMAFundamental trigger, if any: NoRico Auto Industries Active names and traded stake: Graviton Research Capital (0.58 percent)Stock movement and volumes: Gained 8.57 percent to Rs 103.25. Trading volumes at 1 crore shares versus 1-month average of 24 lakh sharesTechnicals: Stock is above 50-DMA and 200-DMAFundamental trigger, if any: The company on February 7 announced its Q3FY24 resultsRajshree PolypackActive names and traded stake: Jainam Broking (0.35 percent), Graviton Research Capital (0.33 percent), QE Securities (0.21 percent), Amit Kumar Jain HUF (0.21 percent), Sudhir Mehta HUF (0.27 percent)Stock movement and volumes: Gained 17.46 percent to Rs 108.65. Trading volumes at 24 lakh shares versus 1-week average of 4 lakh sharesFundamental trigger, if any: The company on February 28 said that it is planning to raise funds

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