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Nifty setup: 5,320 crucial for markets today
The People's Bank of China eased lending curbs in December to promote growth in the slowing economy. But the unexpected jump in the cost of living could make the central bank wary of carrying out further steps to loosen credit.
09 Feb 2012, 08:46 AM IST 
Irate passengers at a closed Kingfisher Airlines counter, Mumbai airport - Source: AP
The Nifty has been trading in a narrow range over the last few sessions even as the daily momentum has remained in the oversold territory.
The Nifty has traded in a range of 5,320-5,400 over the last three sessions and 5,400 has now become a very crucial level for the future direction of markets.
A break and close below 5,320 will mean that the short term trend has reversed. Till that happens, stock rotation could continue for a couple of more sessions.
I advise traders to be cautious on the long side and keep 5,320 as a reversal level in the mind.
A break and close above 5,410 would mean that the correction is not coming just yet and the move is likely to extend to 5,500-5,550 levels.