Is it a dead can bounce or chance for buying?

8000 was a key support area for Nifty. It had broken last week before it reaching to 7700 and then bouncing back to 8000 again. Medium term trend turned bearish for the time being. In this extremely volatile market condition a dead cat bounce situation will occur. The dead cat bounce happened when traders panicked for some time and market crashed after that a relief rally follows. The dead cat bounce makes a nice profit potential opportunity even though the duration for this bounce may not last long. I recommend traders to utilize this opportunity with proper risk management strategy in hand.

I am expecting more corrective or confused market ahead of the week. However you can bet on IT and Pharma stock as usually when rupee cracks these sectors may be benefited. Selecting stocks from these sectors should be done with extreme care. As I have mentioned in my previous article some companies are hedged their forex portfolio thus making n\resilient on currency fluctuations.

In IT sector I expect Mind tree can go upward tomorrow. My preference will be for Mindtree , GodrejCP and Auro Pharma