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📈 Market Kya Lagta Hai
Nifty 50 🔻-1.20%
Midcap 150 🔻-1.14%
Smallcap 250 🔻-1.91%
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Sectors in Focus
Major Corporate Developments This Week
- Asian Paints: Company and the PPG Group Have Executed Supplementary Joint Venture Agreements to the Original JV Agreements, Inter Alia, Extending the Partnership for a Further 15-Year Period
- NTPC Green: Company Updates Regarding 75 Mw Solar Capacity Of Jv Ircon Renewable Power Declared Commercially Operational
- Bosch: Net Profit Rs 1115.3 cr vs Rs 465.4 cr, Revenue Rs 4788 cr vs Rs 4316.8 cr. (YoY)
- Siemens Energy India Ltd: Net Profit Rs 262.70 cr vs Rs 145.80 cr, Revenue Rs 1784.60 cr vs Rs 1484.20 cr. (YoY)
- Tata Motors: Company announces appointment of PB Balaji current CFO of Tata Motors as the next CEO of Jaguar Land Rover
- Lupin Ltd: Net Profit Rs 1221 cr vs Rs 805 cr, Revenue Rs 6163 cr vs Rs 5514 cr. (YoY)
- Gland Pharma: Net Profit Rs 215.4 cr vs Rs 143.7 cr, Revenue Rs 1505.6 cr vs Rs 1401.7 cr. (YoY)
- Zydus Wellness: Company Incorporates Unit ‘Alidac Uk Limited’ In United Kingdom For Fmcg Business Expansion
- PSP Projects: Adani Infra Acquires 34.41% Stake and Joint Control in Company; Strategic Shift Heralds New Era of Leadership and Governance Realignment
- Chemcon Specialty Chemical: Company Strengthens Core Chemical Portfolio with Rs 100 Cr Acquisition of Shivam Petrochem; Eyes Growth via Backward Integration, Promoter Synergies & Immediate Operational Scale-Up
- Steel Exchange India: Company Wins Approvals for Major AP Port Projects, Secures Rs 210 Cr Rinl Billet-Conversion Contract, And Launches Infra-Logistics Subsidiary to Unlock Value & Drive Growth in Specialty Steels under PLI Scheme
- Bharti Airtel Limited: Net Profit Rs 5947.90 cr vs Rs 4159.90 cr, Revenue Rs 49462.60 cr vs Rs 38506.40 cr. (YoY
- EPL Limited : Net Profit Rs 100 cr vs Rs 64.20 cr, Revenue Rs 1107.90 cr vs Rs 1007.40 cr. (YoY)
- Railtel Corp: Company Gets Order worth Rs 185.7 million
- Orchid Pharma: Company Secures French Court Nod to Acquire Allecra Therapeutics' Assets, Bolstering Global Expansion and Complex Antibiotics Portfolio
- Electrosteel castings: Company eyes multi‑year growth with italy valve maker acquisition, patented energy‑harvesting FR technology, 10.11 LTPA DI PIPE capacity
- VRL logistics: Company to drive growth via ltl market expansion, strategic branch additions in untapped regions, optimised own‑fleet utilisation & in‑house fuel supply; strong cash flows to fund network, fleet & infrastructure scale‑up.
- KIMS: Company targets aggressive expansion with 2 bengaluru greenfield projects, major bed additions in ongole, anantapur & kondapur, and new multispecialty rajahmundry hospital; leveraging tech-enabled care & strong specialty mix for sustained revenue growth.
- Jindal stainless: Company targets sustained growth with 4.2 mt capacity by FY27, strategic push in high‑value segments, defence & clean energy alloys, and digital manufacturing to boost efficiency and customer engagement.
- Pvr Inox: Company exec says given future release pipeline, confident that FY26 footfalls will cross FY24 levels.
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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