GLOBAL WATCH 03NOV TO 07NOV 2008

Here is a broader outlook for the world markets this week. Please watch out for the words like near, short, medium term etc.
Also please keep checking every day with updates, if any.

JAPAN(N225) and HONGKONG(HANGSENG) moved up to their upper limits and now have started moving down again. Near term is neutral but in the short term, it is likely that they might hold their recent lows if keep declining further from current levels. But the Long term is still down.

U.S.(DOW) and U.K.(FTSE100) are just hanging on to their upper limits as per our outlook last week. But they need to give another weekly close above these levels to turn things positive for the medium term. Near term is neutral and in the short term these indexes might hold above their recent lows if start declining from the current levels. Whatever the outcome of presidential elections, the Long term still remains down.

INDIA(SENSEX) and CHINA(SHANGHAI) have different ball game now. Their long term growth story is still intact but technically, short to medium term is still negative unless they also give a robust upside close this week, which looks unlikely, at least for CHINA.
Fundamentally, China's over dependence on exports is a matter of concern for this economy until the western economies improve.

In spite of liquidity injection by Reserve Bank, India could remain affected by the credit crunch besides its domestic elections season over the next 6 months. The economic reforms would have to wait until then. There could be resumption of bull trend after that if the U.S. (S&P 500) does not give a close below 770 by then because that would be a clear signal of an impending mother of all bear runs for the world markets.