WORLD MARKET WATCH

WORLD MARKET WATCH
US stocks surged with Dow jumping back above the 9,000 level, as investors welcomed talk of a second economic stimulus plan and an improvement in key lending rates. The Dow Jones industrial average (INDU) added 413 points which translated into a 4.7% gain. Standard & Poor's 500 (SPX) index gained 4.8% and the NASDAQ composite (COMP) added 3.4%. Crude oil is currently trading at $75 a barrel and Gold is at $802.5 an ounce. European stocks rose for a second session as oil shares surged, while banks gained on signs of thawing in inter-bank lending and the possibility of a second U.S. stimulus package. Britain's FTSE 100 index rose 5.4 percent, Germany's DAX rose 1.1 percent and France's CAC added 3.6 percent. Asian stocks climbed, led by producers of consumer goods and commodities, on optimism the U.S. and Japan will expand efforts to stimulate the economy. Japan’s Nikkei 225 gained 2.59%, Hong Kong’s Hang Seng rose 0.55% and China’s SSE Composite is marginally in the green. Treasury Secretary Henry Paulson is Expected to deliver a speech on the state of US economy today. The speech might give indications of the contours of a second stimulus package.

MARKET TODAY

Today market is expected to open in a narrow positive gap and move in a zig zag manner. For Sensex the Critical level is 10265 where as for Nifty 3135 and market has to sustain above this to avoid further selling pressure. The first resistance for the day is at 10415.However on upside the strong Resistance is there at 12575.Below the Critical level again weakness can expect which may move market towards the downside supports at 10190 and 10050.