NIFTY banged today with the two main Headlines: 1) INFOSYS result were below expectation 2) Inflation increase on MoM for the March 2011. NIFTY closed in red at 5824 which was my 2cd support for the day. As expected we show some profit booking in early trades so it opened negative but as soon as the INFOSYS result was out and it came below expectation market was dragged down to my support of 5858 and hovered around tht same level for quiet a time. At 11:30 Inflation data was out and it supported the down rally and dragged NIFTY to levels 0f 5800 but bounced back to 5824 on closure. NIFTY daily oscillators are showing a down trend specially RSI has confirmed but if we see one more day of downside then MACD will also confirm. Where as on weekly chart Stochastic and MACD are still supporting bull trend but RSI isn’t. Now all the results are going to be out and it seems market will be dragged down more as Q4 had high raw material cost almost in all sectors which will bring down the profits of all companies below street expectations. So still I recommend not to take long positions. Crucial level for bull trend as m saying since a week is 5937
NIFTY levels for 18th April:
S-5775 R-5852
S-5745 R-5908
S-5700 R-5937
S-5677 R-6015
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