WATCH LIST: 29SEP TO 03OCT 2008

WORLD MARKETS
U.S. DOW (11143): Faces Resistance at 11400 and 11750. Reversal from/below any of these levels would keep the down targets of 10000 open with a short term support at 10600 levels. Though very unlikely in the near term, it ought to give 2-3 closes above 12150 in order to reverse the current primary downtrend.

U.K. FTSE100 (5088): Faces formidable resistance zone between 5350 and 5420 in near term. Surpassing this zone, it could move up to 5500 and perhaps 5650 but... noticeable weakness prevails! Medium term supports are at 5050 and 4850. Failure of 4850 would be ominous for this market.
Though highly unlikely in near to short term, it ought to give sustainable closes above 5800 to weaken its current downtrend.

JAPAN NIKKEI (11893): Short term uptrend faces resistances at 12400 and 12750. Supports are at 11600 and 11300. Failure of supports would pull it down towards 10000 in medium term.

CHINA HANGSENG (18682): Faces major resistances at 19000 and 21000. Supports in the short term are at 18500 and 16200. Failure of second support, though less likely in the short term, would be ominous for this market.

CHINA SHANGHAI (2294): Immediate resistance is 2300 levels, then major one at 2440. Supports would be at 2115 and 2000. Failure of 2000 would drag it to 1800 levels again.



GOLD, OIL & CURRENCIES
Gold($878): remains in a range below $920. Since it is consolidating below this crucial breakout level and investors also looking for a safe haven, it is more likely to move above $920 in near term and resume its upward journey towards its long term target of $1200. Crucial supports would be 825 and 800. Only a close below 800 would turn things negative for it.

Crude Oil($107): made a false move towards 120 last week to move down below 110, finally. It has four levels of 90-100-110-120. It could whipsaw 100-110 levels this week. Breakout from outer ranges would determine the future course. But fundamentally, it is more likely to remain subdued due to slowing growth. Long term targets are $70 and below.

EUR/USD(1.4587): USD is in a short term downtrend but the U.S. bail out plan could cause buoyancy in it in the near term and may touch supports at 1.44 and 1.43 and even 1.39 perhaps, causing weakness in EUR. But in the long term USD is likely to weaken and head again towards 1.60 against Euro. Weakness would be confirmed when 1.5 ceiling is broken on the upside.