20 OCTOBER TO 24 OCTOBER 2008

WORLD MARKETS
(The levels given below are only an outcome of a technical analysis. Considering the prevailent sentiment besides high volatility, these levels may or may not be achieved ever. Also keep a watch on the words like near, short, medium and long term).

U.S. DOW (8852): Downward pressure is likely to continue. Breach of 8500 on downside would be an indication that the recent low at 7800 levels would not hold in the near term. Then it would be headed towards 7000-7200 levels where considerable buying pressure could emerge. (Short term negativity is mitigated only if there is a sustainable close above 9925 levels, which looks unlikely soon).

U.K. FTSE100 (4063): Made a new low at 3808 last week. Downward pressure is apparent on the charts. Failure of 3808 would drag it towards the band between 3400 and 3300. Expect some buying pressure in this area. (Though unlikely, the short term negativity is mitigated only on a sustainable close above 4550).

JAPAN NIKKEI (8694): By moving little higher last week, this index seems to have made some more room for a sympathetic decline with the expected decline in the world markets. It is likely to decline towards 7600 in the short term, where buying pressure could emerge. (Though unlikely in the near term, a sustainable close above 9600 is needed to make things positive for itself in the short term).

HONGKONG HANGSENG (14554): It is also likely to breach its recent lows at 14400 levels. Then it would be headed towards 11000 levels with some midway support in 13000 region. (Short term negativity is mitigated only on a sustainable close above 17150).

CHINA SHANGHAI (1931): Its dependence on exports to western markets is weighing heavy on this market. It is likely to breach its recent low level at 1800. Then its medium term target would be 1700 and then 1600.

INDIA BSE SENSEX (9975): Please click here for a detailed outlook.



GOLD: Moved below the psychological support at $800 and our stop-loss triggered. More likely to remain subdued in short term. A breach below $740 would help take out support at $700 and this would drag it lower towards $600 in short to medium term. Long term target of $1000 and then 1200 is still intact unless $500 is breached.

EURUSD: Loitering at lower support levels. Breach of 1.325 on the downside would offset more weakness in Euro and move further down towards 1.30 and even 1.25 in near to medium term. A close above 1.355 could bring some relief in the short term.

CRUDE OIL: Some buoyancy is expected in the near term in view of the OPEC meeting scheduled next week. Medium to Long term down target is $50.

ECONOMIC DATA: Needless to say that the U.S. economic calendar(below) would be watched every day for all the negative news rather than the positive ones. It is so because positive news in the recent past did not turn the tables rather the slightest negatives caused sharp cuts in equity markets.