GLOBAL WATCH LIST: 22SEP TO 26SEP 2008

Efforts to change the fundamental picture has not changed the medium term outlook for the markets. All the trends are still in downward mode and needs lot of efforts to surpass multiple resistances ahead. Alternately, the markets shall have to hold the supports, which is again very doubtful amid this atmosphere of selling due to fear. Everything is at the height of uncertainty in the markets. It is a short-term-traders' and scrapers' paradise but the long-term-investors' hell!

WORLD MARKETS
U.S. DOW(11388): Faces resistances at 11580, 11790 and 11870. Supports for the week are at 11070, 10940 and 10815. It needs to break the ceiling above at 12130 to reverse the prevailing downtrend. Otherwise, the tendency would remain to trend down towards 10000 levels.

U.K. FTSE100(5351): Resistances are at 5377, 5420 and 5650. Though very unlikely, it needs to break the ceiling above at 5800 to turn things positive for itself. Supports for the week would be 5106 and 5045. Failure of 5045 would drag it lower to 4800 levels again.

JAPAN NIKKEI(11920): making an attempt to move towards 12300. But more likely to move down towards 10000 levels in days ahead. Supports on way down would be at 11700, 11625 and 11550.

CHINA HANGSENG(19328): Faces resistances at 19525 and 20840. Reversal from any of these resistances would drag it lower towards the supports at 18000 and 17440. Failure of second support would drag it lower to 16000 levels.

CHINA SHANGHAI(2075): Faces resistance at 2220. Though unlikely, it needs to move above 2380 levels to turn things positive for the near term. Supports are at 1970, 1935 and 1906. Breach of 1900 would drag it lower to 1800 once again.

INDIA BSE SENSEX(14042): Faces resistances at 14300 and 14450. Supports are at 13500 and 12550.


CURRENCIES, GOLD & CRUDE
Near term is very unclear in the face of sudden changes taking place fundamentally.

EUR/USD may remain range bound between 1.39 and 1.50 in medium term. But there would be a lot of focus now on the movement of USD in weeks ahead.

GOLD is expected to remain in a range between $820 and $920. A firm breakout on either side is needed. However, buoyancy is expected as investors search for a safe haven.

CRUDE OIL is also expected to remain in the range of $90 to $110 this week.


In the changing scenario of financial landscape, it would be watchful period in terms of various economic data. The focus now would be on Inflation, unemployment and quarterly earnings in weeks ahead. Keep a watch!