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Nifty Outlook

Momentum is missing and VIX was seen swinging making directional trades difficult. Nifty did have a triangular consolidation at the bottom, seen as early signs of reversal, but is yet to shake off the bears, as evidenced by the lack of follow through momentum on Friday despite a peek above 24400. This was surprising, but could be attributed to the near 400 point gapped up opening on Friday, leaving little fuel left to propel further upsides on the last working day of the week. It is fair to say that the trend is evenly poised. Nifty now needs a push above the 20 day SMA now at 24420, to aim for 24540 initially and embark on a 25800 trajectory, but such prospects will not be brought into consideration today if unable to float above 24360. Downside marker is now at 23975, which is where both the Bollinger band extremity and 50 day SMA has converged. An attack on this region will expose the 23670 and the low 23000s, but prospects of the same appear low, given low momentum.

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