GLOBAL WATCH LIST: 15SEP TO 19SEP 2008

WORLD MARKETS
U.S. DOW(11422): seems to have built support at 11000 for near term. Faces resistance at 11550 and 11700 levels. Short Term is sideways with negative bias. Medium Term is unclear until it moves out of 11000 and 11800 range. Long Term is still bearish.
(Only a failure of 11000 on downside would drag it lower in medium term).

U.K. FTSE 100(5417): did not breach support at 5100 levels. Now seems to be headed up towards 5600 levels in near term. But it is a cautious optimism because a reversal from current levels can drag it lower towards 5100 again. Long term is still bearish.

JAPAN NIKKEI(12215): Just hanging above its crucial support of 12000 which is more likely to be breached. A fall below 11700 would push it down towards 10000 in weeks ahead. Weakness persists!

CHINA HANGSENG(19353): Has a support at 19000 levels. Breach of this support will pull it down to 16000 levels in days ahead. Selling pressure continues.

CHINA SHANGHAI(2080): continues to move down towards 2000 levels in the near term. It is the most battered among the lot; it peaked at 6100 just last October; a whopping 4000 points cut.


CURRENCY
US dollar(USD) gained strength as it breached 1.43 level against Euro(EUR) and touched the levels of 1.39. It is currently at 1.42 and is likely to remain buoyant in the medium term. Faces resistance on the upside at 1.44 and 1.50. It could head down towards 1.30 or lower against EUR in medium to long term, causing more weakness in Euro and other currencies. This strength in USD causes weakness in Gold and Crude oil.

CRUDE OIL
Crude oil price is buoyant due to hurricane Ike. Later, it is likely to breach $100 firmly and enter into a primary down trend. But, as said earlier, it may just cause a momentary jubiliation in the markets because this primary down trend would be a confirmation of slowing economies.
(Emerging economy like India benefits from this fall in crude price in the long run eventually).

INFLATION
Still a major cause of concern for all the economies, particularly the U.S. and the U.K.
Indian inflation figures are signaling some cooling down but... keep a watch!

GOLD
Breached the crucial medium term support at $ 770. Now the next target and firm support is at $ 700. Yet, a breach of this support would take it to $650 in weeks ahead.
All non-agricultural commodities are under pressure. But this could be of help only in the jugglery of inflation figures.

ECONOMY
Inability to find solutions soon to Lehman Bros' (a financial institution of repute) woes is a pointer towards the uncertainty of overall financial health.
Anyway, amid this rising inflation, the U.S. FED interest rate decision scheduled for Tuesday would be an important date!

Indian IIP(industrial production) numbers declared last Friday were more than satisfactory but the markets ignored that all as selling pressure continued. This is an indication of prevalent fear and uncertainty about growth in the economies all over.