JULY 18 2008

JULY 18 FRIDAY

SHORT TERM TREND : BEARISH : TARGET RS 5460

LONG TERM TREND : BEARISH : TARGET RS 6460

S1 RS 5560, S2 RS 5510, S3 RS 5460

R1 RS 5660, R2 RS 5700, R3 RS 5763

PREFER SHORTS AT RS 5660 TO 5670

STOP LOSS RS 5730

TARGET RS 5570

Crude closes below $130 on economic worries .

Futures lose $16 in three days ;

Crude-oil futures fell for a third day on Thursday, closing below

$130 a barrel for the first time in more than a month, as worries

continued that slower economic growth will curb oil demand.

Crude has lost nearly $16, or 11%, in the last three days.

Meanwhile, natural-gas futures tumbled 7.6% Wednesday

after government data showed U.S. inventories gained more

than expected.

After rising $2.15 to an intraday high of $136.75 in early morning

trading, crude for August delivery slumped $5.31, or 3.9%, to

end at $129.29 a barrel on the New York Mercantile Exchange,

the lowest since June 5.

The Energy Information Administration reported Wednesday that

over the past four weeks, U.S. motor gasoline demand has

averaged 9.3 million barrels per day, down by 2.1% from

the same period last year.

The EIA also said U.S. crude inventories rose 3 million barrels

in the week ended July 11. Analysts surveyed by energy-

information provider Platts were expecting a drop of

3 million barrels.

Crude's loss led broad declines in most commodities.

The U.S. dollar changed course in afternoon trading, adding

downward pressure to crude.

In other international news, the U.S. is reportedly considering

establishing an embassy in Iran in the next month, according

media reports. It would be the U.S.'s first diplomatic presence

in Iran in 30 years. Signs of increasing stability in the recently

troubled oil-producing nation could potentially underpin

crude prices.