📷 Image Credits: Moneycontrol
On June 25, high-frequency trading activity surged in Indian stocks like Amara Raja Energy and Mobility and Atul Auto, catching the attention of investors. High-frequency trading firms (HTFs), known for their lightning-speed trades using complex algorithms, were particularly active in these stocks, along with Happiest Minds Technologies. These firms aim to capture the spread between spot and futures prices, but have recently been exploring small, illiquid stocks as well. The volumes generated by HTFs often attract retail investors to these stocks.
Amara Raja Energy and Mobility saw significant movement, reaching a 52-week high and gaining 19.29 percent to Rs 1646.2 on June 25. The trading volumes stood at 2 crore shares, a significant increase from the 1-month average of 40 lakh shares. Technical analysis showed the stock was above the 50-DMA and 200-DMA. Additionally, the company’s subsidiary recently signed a technical licensing agreement with GIB EnergyX Slovakia, enabling the production of world-class LFP cells.
Atul Auto also experienced a surge, gaining 10.68 percent to Rs 603.65 on the same day. The trading volumes reached 33 lakh shares compared to the 1-month average of 2 lakh shares, with technical indicators showing the stock above the 50-DMA and 200-DMA. On the other hand, Happiest Minds Technologies witnessed a loss of 9.46 percent, trading at Rs 830.55 with volumes at 3 crore shares. The stock was below the 50-DMA and 200-DMA following a 6 percent stake sale by promoter Ashok Soota.
The trend of high-frequency trading in these Indian stocks indicates a dynamic market environment, with significant movements and opportunities for investors to capitalize on the market activity. As HTFs continue to play a prominent role in the trading landscape, retail investors and traders should stay informed about the latest developments and trends to make well-informed investment decisions.
