Nifty – Short term view.

The 20 day moving average may be used as the benchmark to determine if the short term trend is up or down. On Friday, the Nifty rallied to touch the 20 day average before closing below it. The test was done, but the average acted as resistance. If and when prices close above this average, we can assume that the short term trend has turned up. have a look at the Nifty chart below: