22nd August 2008. Market Today

US markets exhibited a mixed trend with Dow Jones industrial average adding 0.11% and the broader Standard & Poor's 500 (SPX) index rising around 0.2%. The NASDAQ composite (COMP) declined 0.4%. The nearly $6 spike in crude oil prices impacted the markets negatively. Crude oil is currently trading at $121 a barrel and Gold is at $839 an ounce. European shares fell on persistent financial sector worries and a rising oil price, which reignited inflation fears. Britain's commodity-heavy FTSE 100 ended flat, while Germany's DAX lost 1.3 percent and France's CAC fell 1.4 percent. Rising commodity prices have buoyed the commodity dependent economies of Brazil and Argentina. Brazil’s Bovespa gained 1.01%, Argentina’s Merval rose 0.34% and Mexico’s Bolsa lost 1.23%. Sharp spikes on oil prices have negatively impacted the Asian markets since they import most of their energy needs. Japan’s Nikkei 225 lost 0.67% and China’s SSE Composite has lost 2.61%. Among the closely watched events in US is Fed Chairman Ben Bernanke’s speech on the economy.


The Asian markets are showing yet another gloomy picture in the morning today as many commodities are headed for their biggest weekly gain in 33 years. The expectation of strong demand again from China as the Olympics is coming to an end is bringing strength to commodity prices. Back home, we are going to address the fear of rate hikes again after a 12.63% reported inflation. The $6 rise in Crude prices will also put pressure on the economy. We cannot expect an easy walk over in nuclear deal, as some opposition is there from few of the member countries in NSG. Sensex is expected to open around 14140 level, which may act as a Crucial trend decider for today. A fall below this level may find support at 13990.But any intraday movement may face resistance at 14350 level above which we can expect short covering.