GLOBAL WATCH LIST: 13OCT TO 17OCT

WORLD MARKETS
(Please watch out carefully for the words like Near, Short, Medium and Long term etc. Misreading of these words can cause wrong speculation. Every care may be taken to understand the deliberately worded phrases below. A cursory look at these levels would not help).

U.S. DOW (8451):
Near Term:Resistances for the week are 8815, 9100 and 9400. Surpassing the second resistance would bring some relief for near term and a move towards 11000. Inability to do so soon would keep it under immense pressure to break the recent low at 7880.
Medium Term: A close below 7880 level would drag it lower towards 7000 levels where strong buying for long term could take place. But in the event of a close below 6940 would have much serious impact on recovery in the long term.

U.K. FTSE100 (3932):
Near Term: Resistances are at 4041, 4093, and 4145. Inability to move above 4093 would keep it under pressure to break the recent low at 3874.
Medium Term: In case of a close below this recent low of 3874, this index will trend towards the Year 2003 low levels of 3400 to 3300 where buying for a long term perspective could take place. On the other hand, a close below 3300 support would drag it towards 2900 levels.

JAPAN NIKKEI (8276): Likely to move down towards the Year 2003 low point at 7600. The count of resistances for this market are meaningless at this juncture. Expect some buying pressure at this lower level.

HONGKONG HANGSENG (14797): Inability to move above 15800 in near term would keep this index under pressure to breach the recent lows at 14400. Then a failure of support at 14000 would drag it lower towards 11000 levels.
In case of a failure of 11000, the medium term supports below 11000 levels would be at 8300.

CHINA SHANGHAI (2001): Holding on to its support at 2000 is not a positive sign. A close below 2000 would drag it to 1800 levels again. China's heavy dependence on exports to the Western countries, particularly the U.S. is a story in itself. A close below 1800 would drag it towards 1500 in medium to long term.


Gold: Existing short term long positions may keep a stop loss point at $800. Wait until the next call because some money from this precious metal seems to have moved towards equity markets on Friday.

EUR/USD: The USD could find support around 1.33 against EUR. But USD is expected to grow weaker in the long term.

CRUDE OIL: It is still in a primary downtrend. A breach of $70 on downside would take it towards $50 in medium to long term.
This weakness in oil prices and cooling of inflation could help India to recover the losses early comparatively.