India Vix touches all-time low of 11.88

This indicates that investors remain optimistic that the market will continue to trend upward

Volatility gauge, India Vix, has touched an all-time low on Friday, signalling investor confidence in the market's upmove. India Vix closed at 11.88, down 3.5% from its previous close on a day when the markets ended flat.

The BSE Sensex was marginally down and closed at 27,090 while the NSE Nifty was up at 8,121. Vix is a measure of the volatility in the market and lows touched on Friday seem to indicate that investors remain optimistic that the market will continue to trend upwards.

"The outlook for the market is positive and option premiums are also low. All of this indicates that the market can move up from the current levels," said Alex Mathew, head of research, Geojit BNP Paribas Financial Services.

India Vix, which was first introduced in 2007, has fallen by over 21% so far this year as markets rallied on hopes of a revival in the economy post the general elections held in May.

Analysts believe that the Vix could continue to trend lower as the NSE Nifty and BSE Sensex are expected to see further upmoves of about 5-10% in the short-term.