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I have two SharePoint List and each of them have a workflow.
Both list's workflow have the option 'start this workflow when a new item is created' ticked.
Workflow in the 1st list may move item to 2nd list if it fulfill certain requirements. Same goes to 2nd list (Workflow in the 2nd list may also move item to 1st list if it fulfill certain requirements)

May I know if there could be a scenario whereby item are looping between two list? (In another way, is a item that is moved from another list consider a new item?)

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up vote 0 down vote accepted

Workflows that copy items would be considered new items in the other list. Keeping duplicate items like that sounds like bad information architecture.

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Got your point. By the way, may I know if it is possible to identify a item status whether is it newly created in this list itself or moved from some other list? – Wilson Tan Sep 9 '11 at 1:40

There are valid instances where you would write information from one list/workflow to another in order to trigger a different workflow. Typically it is different information based on things like a follow up time or a related request. In this case the workflows are managed separately. I agree with Eric though, its bad IA to duplicate the same info in two lists in order to execute multiple workflows. I would perhaps try a different approach like parallel tasks or something else to meet your objectives.

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