NIFTY as expected closed in red today at 5785.70.  NIFTY had two big news today 1) Sun Pharma’s Deal with Merck and 2)IIP date of Feb. Sun Pharma news was stock specific and it was a deal worth 60000 cr while IIP data were negative which acted as a catalyst to bearish trend for the NIFTY. Relinfra’s buyback offer opened today which Cairn India’s open offer at Rs.355/share was also opened today but NIFTY reacted more strongly on IIP data and was down almost by a 1%. NIFTY opened at  5805 and hovered around 5824 which was my support but as soon as IIP data were announced it came down to another support at 5790 and was around the same level until last 30 mins when it touched 5775. Now RSI and Stochastic is yet turning down and showing a bearish trend for short term. While weekly and Monthly RSI also turned downside showing a bearish trend. NIFTY should bounce back from 5750 or latest frm 5700 breakout of that level otherwise will result into more bearish trend. BankNifty and Nifty Midcap are supporting NIFTY50 therefore don’t take any fresh long position until reversal is confirmed.
Levels for 13th April 2011:
S-5759       R-5823
S-5721       R-5855
S-5700       R-5906
S-5666       R-5937

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