High-frequency trading was active in Ceat and India Cements on June 28. Both stocks closed higher.

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 also been active in small, illiquid stocks.

More often than not, the volumes generated by them attract retail investors to these stocks.

Stocks where HFTs were active on June 28:Ceat

Active names and traded stake: Graviton Research Capital (o.71 percent)

Stock movement and volumes: Gained 8.57 percent to Rs 2821.85. Trading volumes at 25 lakh shares versus 1-month average of 3 lakh shares

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

Fundamental trigger, if any: NoIndia Cements

Active names and traded stake: HRTI Private Limited (1.68 percent), Graviton Research Capital (1.34 percent)

Stock movement and volumes: Gained 0.12 percent to Rs 293.57. Trading volumes at 6 crore shares versus 1-month average of 2 crore shares

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

Fundamental trigger, if any: On June 27, Radhakishan Damani sold a 11.34 percent stake in India CementsDisclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

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