WEEKLY OUTLOOK: 06APR TO 10APR 2009

The markets didn't react very negatively to continuously rising unemployment data last Friday but it is certainly going to remain in the minds of the bulls. The rising concern of unemployment could subdue the mood to some extent next week, but the bulls are not going to relent so soon now.

Technically, almost all the indices are charting their fifth wave(final wave) of this recent uptrend. This fifth wave can either get extended if the nearest resistances are breached, otherwise a sideways trend could continue from the current levels for a few more days.

Momentum indicators on weekly charts of many markets have entered into the positive zone after a very prolonged period. Volatility indexes are showing signs of exhaustion and cooling off. All of these are very positive signs for the markets in short to medium term.
Please also see the detailed outlook on CBOE Volatility Index(VIX) in the post of Saturday, below.

RESISTANCE AND SUPPORT LEVELS
(East to West)
(Only the crucial support and resistances are given for this week. Any significant view point, if arises would be given in the updates.)

JAPAN NIKKEI (8750)
Resistances are at 9008, 9325(short term longs book profits here), 9521 and 9630
Supports are at 8485, 8390 and then 7950-7800 strong support zone.

CHINA SHANGHAI(2420)
Resistances are at 2475, 2523(Book short term profit here) and 2726.
Supports at 2293 and 2200-2240 band is strong support zone.

HONGKONG HANGSENG (14546)
Resistances are at 15525 and then at 15764-15780 zone.
Supports are at 14029 and then 13000-13100 band is a strong support zone.

INDIA SENSEX (10349)
Resistances are at 10470, 10571 and then 10924.
Supports are at 9977, 9834 and 9650.

INDIA NIFTY (3211)
Resistances are at 3229-3241 zone; but a move above 3287 can take to 3450 also.
Supports are at 3095, 2999 and 2884.

U.K. FTSE100 (4030)
Resistances are at 4138, 4185 and 4211. Book partial profits at 4185.
Support around 3950 should prove to be a strong support. Stop loss for long positions is 3800.

U.S. DOW (8018)
Resistances remain at 8088, 8132 and 8406.
Supports are at 7757, 7682, and 7560-7438 zone. Stop loss for long positions is 7270.