January 16 2011,

Last two weeks have been the bad burner for the stock market. NIFTY has lost near to 500 points or 8% during the last two week to close at 5,655. The index on Friday, January 14 2011, closed below the crucial support level 5,690, suggest we should revisit our trading strategies in the near short-term. The rising food prices and the yesterday's INR2.5-2.80 approx. hike in petrol is a really icing on the cake. The trader should be cautious before creating fresh long positions. The NIFTY is likely to take support at 5,600 and if its broken next support will be 5,500.