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📈 Market Kya Lagta Hai
Nifty 50 🔻 -1.15%
Midcap 150 🔼 +1.20%
Smallcap 250 🔼 +1.82%
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Sectors in Focus
Major Corporate Developments This Week
- Frontier Springs: Company announced receiving orders for air springs assembly totaling ₹292.6 Cr from Rail Coach Factory, Kapurthala and Modern Coach Factory, Raebareli.
- Orchid Pharma: Company says Establishment Inspection Report “EIR” has been issued by USFDA with “VAI” status accepting the company’s submission on the observations raised earlier.
- Balrampur Chini Mills: Company launched 'Balrampur Bioyug', India’s first PLA (Poly Lactic Acid) biopolymer brand, marking a significant step towards sustainable innovation.
- Jio Fin: Company received certificate of registration to Jio BlackRock Mutual Fund by SEBI.
- IRCON International: Company secures ₹1,068 Cr EPC contract from East Central Railway for Ganga Rail Bridge project.
- Apollo Hospitals: Company to purchase land in Bengaluru for setting up 500-bed hospital for ₹944 Cr; company to acquire existing operating hospital asset for ₹285 Cr.
- SMS Pharma: Company receives USFDA EIR for Hyderabad facility, closes inspection successfully.
- NIBE: DRDO's ARDE signed a technology transfer agreement with the company, Pune, for manufacturing Pinaka MBRL and battery command post to boost indigenous defence production.
- Marksans Pharma: Company’s unit in UK, Relonchem Limited, receives marketing authorization for the product Metformin Hydrochloride 500 mg/5 ml oral solution.
- Alembic Pharma: Company announces USFDA final approval for Bosutinib tablets; tablets have US sales of $291 million.
- H.G. Infra Engineering: Company secures LoI for battery storage project from Gujarat Urja Vikas Nigam; company has been awarded 300 MW/600 MWh out of a total 500 MW/1000 MWh standalone battery energy storage systems (BESS) project in Gujarat under tariff-based competitive bidding.
- Exide: China said to have stopped magnets export to India which are used in battery manufacturing; Exide depends heavily on magnets from China.
- HAL: Indian MoD approves public-private partnership model to execute the stealth fifth-generation advanced medium combat aircraft (AMCA).
- Suzlon: Net profit at ₹1,181 Cr vs ₹254 Cr, revenue at ₹3,774 Cr vs ₹2,179 Cr (YoY).
- Lumax Auto Technologies: Net profit at ₹79.67 Cr vs ₹51.34 Cr, revenue at ₹1,132 Cr vs ₹757 Cr (YoY).
- Pokarna Ltd: Net profit at ₹58.90 Cr vs ₹15.51 Cr, revenue at ₹262 Cr vs ₹161 Cr (YoY).
- EID Parry: Net profit at ₹287 Cr vs ₹220 Cr, revenue at ₹6,811 Cr vs ₹5,557 Cr (YoY).
- Supriya Lifescience: Net profit at ₹50.38 Cr vs ₹36.98 Cr, revenue at ₹184 Cr vs ₹158 Cr (YoY).
- Time Technoplast: Net profit at ₹110 Cr vs ₹92.4 Cr, revenue at ₹1,470 Cr vs ₹1,390 Cr (YoY).
- Medplus: Net profit at ₹51.3 Cr vs ₹33.4 Cr, revenue at ₹1,510 Cr vs ₹1,490 Cr (YoY).
TechnoFunda Investing Quote from Legends -
This quote by Mark Minervini emphasizes the importance of disciplined buying in the stock market. "To compound your money, and not your mistakes" means you should focus on strategies that grow your capital, rather than ones that repeatedly cost you. Buying "on the way up" refers to purchasing stocks that are already showing strength and upward momentum, increasing the probability of further gains. In contrast, buying "on the way down" often means catching falling stocks in hopes of a rebound, which can lead to deeper losses. The core message is to align with strength and proven performance, not hope-driven speculation.
📚 Book I'm Reading This Week
Thinking in Systems by Donella H. Meadows is a foundational book that introduces readers to the concept of systems thinking — a way of understanding the interconnectedness and complexity of the world around us. Through simple language and powerful examples, Meadows explains how systems work, why they behave the way they do, and how seemingly small changes can lead to significant, often unexpected outcomes. The book encourages a shift from linear thinking to a more holistic perspective, helping readers identify leverage points for change and make smarter decisions in personal, organizational, and global contexts.
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TechnoFunda 101 - Power Capsules
Learn technical as well as fundamental concept in a simple way
The Hidden Dangers of Averaging Down – Why Doubling Your Bet May Halve Your Capital
One of the most common habits among retail investors is this:
“The stock is down 30%... let me average my cost.”
“The fundamentals are still intact... I’ll buy more at a lower price.”
This may feel rational. Even brave.
But most of the time, it’s dangerous.
Let’s explore the psychology and risks behind averaging down — and why the smartest investors do it far more selectively than most.
💣 What Is Averaging Down?
Averaging down means buying more of a stock after it has declined in price — in an effort to lower your average cost.
It’s the classic “buy the dip” approach.
But if the original thesis is broken, it’s not a dip. It’s a trap.
🧠 Why We Fall for It
Averaging down is tempting because of:
- Anchoring bias: “But it was at ₹500 once!”
- Loss aversion: “If I double my position, I can break even faster.”
- Ego protection: “I don’t want to admit I made a mistake.”
- Sunk cost fallacy: “I’ve already invested so much — I can’t stop now.”
But here’s the truth: a stock falling 50% is not a reason to buy more. It’s a reason to investigate harder.
⚠️ The Real Risks of Averaging Down
1️⃣ It Concentrates Risk
You’re putting more money into a loser — which increases portfolio risk and emotional stress.
2️⃣ You Might Be Wrong — Twice
If your original thesis was flawed, you’re now betting bigger on a bad idea.
3️⃣ It Delays Recovery
Stuck capital in a weak position could’ve been deployed into better opportunities.
4️⃣ It Encourages Passive Investing
You stop actively analyzing — and start emotionally defending your past decisions.
💡 When (and If) You Should Average Down
You need brutal clarity on fundamentals.
Ask yourself:
- Has the business outlook improved or deteriorated?
- Are earnings, margins, and cash flows intact — or just temporarily disrupted?
- Has a positive trigger emerged post-decline (e.g., new order win, policy tailwind, insider buying)?
And from a technical perspective, only consider averaging when:
- The price is near a major support zone or base.
- There’s a bullish reversal candle or pattern forming.
- Volumes are shrinking on the decline (suggesting no panic selling).
- The stock shows relative strength compared to its sector or index.
Never average into a falling knife. Wait for signs of stability before considering another move.
📌 Key Takeaway:
Averaging down isn’t a strategy.
It’s a psychological reflex.
Smart investors don’t average blindly — they reassess brutally.
Because in investing, being early is fine.
Being stubborn is costly.
“Don’t dig a deeper hole just because you’ve already fallen in.”
🎙️ My Weekly Podcast For You
Keep Compounding...
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Vivek Mashrani, CFA
Founder, TechnoFunda Investing
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