HFT Scan: Dish TV, MTNL, Subex see some action
While Dish TV and Subex gained over 10 percent on January 5, Snowman ended one percent higher and MTNL closed one percent lower
High-frequency trading firms (HTFs) use complex algorithms and powerful computers to execute trades at lightning speeds
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High-frequency trading firms were particularly active in Dish TV, MTNL, Subex and Snowman Logistics, making some quick bucks by flipping trades in seconds on January 5. While Dish TV and Subex gained over 10 percent, Snowman ended 1 percent higher and MTNL closed 1 percent lower.
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 5:
Dish TVActive names and traded stake: HRTI Pvt Ltd (1.1 percent), Graviton Research (1.03 percent), Citadel Securities (0.8 percent), QE Securities (0.6 percent) and Jainam Broking (0.3 percent).
Stock movement and volumes: Gained 11 percent to Rs 21.65. Trading volumes at 27 crore shares versus one-month average of 7 crore shares
Technicals: Stock is above 50-DMA and 200-DMA
Fundamental trigger, if any: Over a week back shareholders had voted out the company’s entire board.
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MTNLActive names and traded stake: QE Securities (0.2 percent), HRTI (0.5 percent), Graviton (0.3 percent)
Stock movement and volumes: Fell 1.4 percent to Rs 35.20. Trading volumes at 3 crore shares versus 1-month average of 1 crore shares
Technicals: Stock is above 50-DMA and 200-DMA
Fundamental trigger, if any: No
SubexActive names and traded stake: HRTI Pvt Ltd (1.1 percent), Graviton Research (1.2 percent), Citadel Securities (0.6 percent), QE Securities (0.4 percent) and Jainam Broking (0.7 percent)
Stock movement and volumes: Gained 14.6 percent to Rs 39.05. Trading volumes at 11 crore shares versus 1-month average of 2 crore shares
Technicals: Stock is above 50-DMA and 200-DMA
Fundamental trigger, if any: No
Snowman LogisticsActive names and traded stake: HRTI Pvt Ltd (0.6 percent), Graviton Research (0.6 percent)
Stock movement and volumes: Gained 1.3 percent to Rs 67.90. Trading volumes at 74 lakh shares versus 1-month average of 33 lakh shares
Technicals: Stock is above 50-DMA and 200-DMA
Fundamental trigger, if any: Company opened new facility in North East India, a few days back, expanding operations.