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π Market Kya Lagta Hai
Nifty 50 π’ +1.71%
Midcap 150 π’ +3.04%
Smallcap 250 π’ +5.48%
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Sectors in Focus
Major Corporate Developments This Week
- GE Vernova: Company bags 3 orders worth βΉ500 crore From Power Grid Corp.
- Welspun Specialty: Company notified as L1 bidder for a project worth Rs 231.77 crore by BHEL
- RVNL: Company has received a letter of acceptance from HPSEBL for developing distribution infrastructure in Himachal Pradesh's Central Zone. The project is valued at Rs 729.82 Cr
- Refex Industries: Refex eVeelz set to expands its EV Fleet with 1000 electric cars in Strategic Partnership with leading ride-hailing platform.
- Oil Downstream companies: Brent oil slips below $70/bbl for first time since October.
- Oriental Rail Infrastructure: The company secures a Vande Bharat order worth βΉ428.9 million.
- Zaggle Prepaid: The company partners with Tech Mahindra for a spend management solution.
- Zydus Lifesciences: The company receives final approval from the USFDA for Dasatinib tablets; US sales stand at $1.81 billion.
- Star Cement: The company has been declared the preferred bidder for a limestone block in Assam; the block has a resource of 192.36 million tonnes.
- Samvardhana Motherson: The company has been selected as a Tier 1 supplier to Airbus Commercial Aircraft.
- HBL Power Systems: The company wins a Kawach order worth βΉ148 crore.
- Vinati, IOCP, and Granules: Ibuprofen prices surge as supply chain disruptions and tariffs drive costs higher.
- NHPC: The company to commission the Parvati plant, which could add βΉ1,900 crore to its topline.
- Suzlon: The company expands its largest C&I order with Jindal Renewables by 204.75 MW.
- IRCTC and IRFC: The Government of India has granted Navratna status to Indian Railway Catering and Tourism Corporation (IRCTC) and Indian Railway Finance Corporation (IRFC).
- IEX: The company achieves a monthly electricity traded volume of 9,622 MU in February 2025, marking a 9% year-on-year increase; the green market achieves 85% year-on-year growth.
- Jupiter Wagons: The company's Group MD states that its unit, Jupiter Electric Mobility, aims to achieve revenue of βΉ100 crore in its first year of operations, with a projected year-on-year growth of at least 2x.
- Praveg Limited: The company announces a hotel management agreement with The Indian Hotels Company Limited.
- Transformers and Rectifiers: The company has secured domestic and export orders amounting to βΉ350 crore.
TechnoFunda Investing Quote from Legends -
Howard Marks emphasizes that investing is not a one-size-fits-all endeavor. The most effective strategy varies based on an individualβs unique strengths, understanding, and emotional resilience. Some investors excel in value investing due to patience and deep analysis, while others thrive in momentum trading by leveraging quick decision-making skills. Recognizing one's own temperamentβwhether risk-averse or risk-seekingβhelps in choosing an approach that aligns with personal strengths, increasing the chances of long-term success. The key is self-awareness and aligning strategy with one's abilities rather than blindly following popular methods.
π Book I'm Reading This Week
Reminiscences of a Stock Operator is a 1923 novel by Edwin Lefèvre that offers a semi-autobiographical account of the life of Jesse Livermore, a renowned stock trader. The narrative chronicles Livermore's journey from his early days as a quotation-board boy in bucket shops to his rise as a prominent figure on Wall Street. Throughout the story, the book delves into the intricacies of stock speculation, market psychology, and the cyclical nature of financial markets, providing timeless insights into the challenges and strategies of trading.
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TechnoFunda 101 - Power Capsules
Learn technical as well as fundamental concept in a simple way
How to Pick the Best Themes, Sectors & Industry Groups for Maximum Returns!
Sector selection is one of the most critical aspects of successful investing. William OβNeilβs in his book How to Make Money in Stocks suggest that strong market leaders often emerge from top-performing industry groups, while lagging sectors tend to drag stocks down. Identifying emerging leadership in sectors and industries can significantly improve stock selection and overall returns.
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π Why Industry Group Strength Matters?
Stocks move in groups. The best stocks usually come from the strongest sectors, driven by underlying economic, technological, or macro trends.
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π How to Identify Strong Industry Groups?
1οΈβ£ Focus on the Top 20 Industry Groups
- The strongest stocks typically belong to the top-performing industry groups.
- Avoid lagging sectors, as weak industry momentum can cap stock performance.
- Historical trend: Every major bull market leader has emerged from a leading industry at the time.
π‘ Example:
- In the early 2000s, Tech stocks dominated the market.
- During 2010-2020, E-commerce, digital payments, and cloud computing led the charge.
- In 2023, AI & semiconductor stocks became market leaders.
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2οΈβ£ Avoid the Weakest and Oversaturated Sectors
π« Stay away from sectors with too few stocks β These lack enough data to confirm trends.
π« Avoid overly large sectors β Dilution of strength can make it hard to find outperformers.
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3οΈβ£ Track Industry Performance Over Six Months
πΉ Momentum is key β Sectors that consistently show strength over a 6-month period are more likely to sustain trends.
πΉ Use relative performance tools to track industry movement vs. the broader market (e.g., Nifty or S&P 500).
π‘ Example:
- If automobiles outperform for six months, look for emerging leaders within auto stocks.
- If banking lags while IT gains strength, shift focus to IT stocks.
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4οΈβ£ Watch for Stocks Making New Price Highs
π₯ Leading stocks within a sector tend to break out first.
π A high number of stocks making 52-week highs is a sign of industry strength.
π‘ Example:
- If multiple pharma stocks hit fresh highs, the sector is gaining momentum.
- If only a few stocks in a sector are performing, it might be a stock-specific rally rather than an industry-wide trend.
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5οΈβ£ Use Industry Relative Strength Ratings
π Industry Relative Strength Ratings highlight the strongest sectors.
- Top-rated industries tend to produce the best-performing stocks.
- Avoid low-ranked industries, as they tend to struggle even in bull markets.
πΉ Check leading industry ETFs or sector indices to confirm leadership trends.
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6οΈβ£ Look for Sectors with Strong Earnings Growth
π° Earnings drive stock prices.
- Industries with strong earnings growth and positive sentiment have a higher chance of producing multi-bagger stocks.
- Look for sectors where companies are consistently beating earnings expectations.
π‘ Example:
- IT companies showed explosive earnings growth from 2010 to 2020, leading to massive stock price appreciation.
- EV & renewable energy stocks gained momentum post-2020 as earnings visibility improved.
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7οΈβ£ Institutional Buying as a Confirmation Tool
π Institutional accumulation is a powerful indicator of sector strength.
- Look for price-volume surges in industry leaders.
- If big players are entering a sector, itβs a sign of future strength.
π‘ Example:
- FII inflows into banking stocks can indicate a shift in market sentiment towards financials.
- If mutual funds and FIIs rotate into industrials, it could signal a manufacturing or capex cycle boom.
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π Key Takeaways for Sector-Based Investing
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The biggest market winners come from the strongest industry groups.
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Focus on the top 20 industry groups for better stock selection.
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Monitor sector trends over six months to spot emerging leadership.
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New price highs & earnings momentum are signs of a strong industry.
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Institutional buying & relative strength ratings confirm sector strength.
By focusing on sector leadership, you significantly improve your odds of identifying multi-bagger stocks early! ππ
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ποΈ My Weekly Podcast For You
Keep Compounding...
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Vivek Mashrani, CFA
Founder, TechnoFunda Investing
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