HFT Scan: Texmaco Rail, MTNL, National Fertilisers see some action

High frequency trading firms on January 20 were active in Texmaco Rail, Mahanagar Telephone Nigam Limited, and National Fertilisers Limited, making some quick money by flipping trades in seconds. All of the stocks 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 January 20:Texmaco Rail

Active names and traded stake: Graviton Research Capital (0.85 percent)

Stock movement and volumes: Gained 7.52 percent to Rs 217.4. Trading volumes at 2 crore shares versus 1-month average of 61 lakh shares

Technicals: Stock is above 50-DMA and 200-DMA

Fundamental trigger, if any: New order win from Ministry of Railways for Rs 1374 crore on December 15.Mahanagar Telephone Nigam Limited

Active names and traded stake: Graviton Research Capital (0.61 percent), Jainam Broking (0.3 percent), HRTI Private Limited (0.55 percent)

Stock movement and volumes: Up 5.45 percent to Rs 37.7. Trading volumes at 4 crore shares versus 1-month average of 1 crore shares

Technicals: Stock is above 50-DMA and 200-DMA

Fundamental trigger, if any: NoNational Fertilises Limited

Active names and traded stake: Graviton Research Capital (0.62 percent), HRTI Private Limited (0.53 percent)

Stock movement and volumes: Gained 7.52 percent to Rs 122.3 Trading volumes at 3 crore shares versus 1-month average of 2 crore shares

Technicals: Stock is above 50-DMA and 200-DMAFundamental trigger, if any: No