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HFT Scan: Algo traders rush for Amara Raja and Exide Industries

Original source (on modern site) | Article images: [1]

Amara Raja Energy and Mobility, Exide Industries, and Dhani Services touched a 52-week high on April 16.

April 18, 2024 / 06:24 AM IST

High-frequency trading firms (HTFs) - or algo firms on steroids -use complex algorithms and powerful computers to execute trades at lightning speeds.

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High-frequency traders were active in Amara Raja Energy and Mobility, Exide Industries, and Dhani Services on April 16. All 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, attract retail investors to these stocks.

Stocks where HFTs were active on April 16:

Amara Raja Energy and Mobility 

Active names and traded stake: Graviton Research Capital (0.52 percent)

Stock movement and volumes: Gained 10.91 percent to Rs 967.95. 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: No

Exide Industries 

Acive names and traded stake: HRTI Private Limited (0.56 percent)

Stock movement and volumes: Gained 12.41 percent to Rs 459.8. Trading volumes at 8 crore shares versus 1-month average of 2 crore shares

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

Fundamental trigger, if any: The company on April 9 entered into an agreement to acquire 26 percent stake in a company for generation and supply of solar power

Dhani Services

Active names and traded stake: Graviton Research Capital (0.66 percent), HRTI Private Limited (0.61 percent), Topgain Finance Limited (0.47 percent)

Stock movement and volumes: Gained 15.38 percent to Rs 48. Trading volumes at 5 crore shares versus 1-week average of 1 crore shares

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

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