Thursday, January 20 2011, Market Update

Right from the outset of the trading yesterday, the Nifty was struggling for  a up-move. During later part of the day the indices witnessed a sharp fall and closed down 33 points at 5,691. The traded volumes were higher compared to the previous session, which is a negative indicator for a bearish session. As mentioned in earlier posts, the index trading just at the support, so the watch-out point from here would be the 200-day MA (5,600). So, if the Nifty breaches 5,600, we could see more downside.The global markets also in read before the India opens, does not provide a breather for us to recover.The trader should adopt cautious approach in the near short-term.