Industrial output in November grew at its slowest in a year and a half.
The 2.7% rise was way below the 11.3% annual growth in the previous month and under the median forecast of 6.6% in a Reuters poll. Disappointing industrial output data  was expected to drag market down. However market jumped back to 5860 level  with very strong  global clues  and  short covering. 

NSE Intraday data on 12th January 2011

 
IIP data was released around 11:00 AM IST and market was already down 50-60 points below the opening level at the time

Next most important event for market is Reserve Bank of India(RBI)  general meeting on credit policy.
RBI is likely to increase interest rate by 25 basis point.