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

HFT Scan

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

HFT Scan : 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. HFT Scan

The volumes generated by them, more often than not, attract retail investors to these stocks. HFT Scan

Stocks where HFTs were active on April 16: HFT Scan

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-DMAFundamental trigger, if any: No HFT Scan

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 HFT Scan
Technicals: Stock is above 50-DMA and 200-DMAFundamental 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 HFT Scan

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 HFT Scan

This news snippet indicates that high-frequency trading (HFT) activity was significant for certain stocks on April 16th. Here’s a breakdown:

  • HFT (High-Frequency Trading): This refers to a type of algorithmic trading strategy that involves using powerful computers to execute a large number of trades very quickly.
  • Algo traders: These are computer programs that automatically execute trades based on pre-defined rules and market signals.
  • Amara Raja and Exide Industries: These are two companies whose stocks saw a surge in HFT activity.
  • 52-week high: The news mentions that all three stocks (including Dhani Services) touched their highest price point in the past 52 weeks. HFT Scan

This suggests that algo traders identified an opportunity in these stocks and actively bought them, potentially driving their prices up.

Here are some reasons why HFT traders might be interested in these stocks: HFT Scan

  • Increased demand: There could be genuine investor interest in these companies, leading to higher overall trading volume. HFT algorithms might be capitalizing on short-term price movements within this volume.
  • Volatility: If the stock prices were fluctuating significantly, HFT strategies can exploit those short-term swings for profits.
  • News or events: Positive news or upcoming events related to these companies could trigger buying activity from algo traders. HFT Scan

It’s important to note:

  • This is just a snapshot of activity on a single day.
  • HFT is a complex strategy and the reasons behind their trades can be difficult to pinpoint.
  • HFT activity doesn’t necessarily guarantee a stock’s future performance. HFT Scan

For a more informed investment decision, consider traditional research factors like company financials, industry trends, and expert analysis alongside HFT activity. HFT Scan

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