Hot Stocks: Traders should continue with a ‘buy on decline’ strategy

What a spectacular past week it was for our markets, especially after seeing a massive knock of more than 300 points on the Budget Day. The kind of fall we have witnessed post the Budget who would have thought of such kind of price movement in the subsequent week.

But fortunately, the fear over ‘Coronavirus’ subsided as the week progressed and this eventually had a positive impact on all global markets to a great extent.

We, too, managed to stabilise from the shocker Budget day and witnessed a v-shaped recovery in tandem with global peers. With this, Nifty recouped almost all losses to end the remarkable week with nearly 4 percent gains.

Now, it’s easy analysing in hindsight and cheering stupendous recovery but the conviction and emotions were completely shaken last Saturday after witnessing such a terrible fall.

In the midst of all this, we remained a bit hopeful considering the cluster of support around 11600. The ‘200-SMA’ coupled with few Fibonacci ratios acted like a sheet anchor for our markets and played an essential role in the swift recovery.

Eventually, the hope turned into a reality. We are back above 12000 now, considerably in the safer terrain and the way prices are shaped up now, we expect the northward trajectory to continue.