61.3K to act as profit booking zone

The benchmark indices continued positive momentum second day in a row, BSE Sensex was up by 390 points. Among sectors, Metal index bounce back sharply, rallied over 1.75 percent whereas despite strong momentum profit booking continued in PSU Bank index. Technically, market continued positive momentum and after a long time the index succeeds to close above 20-day SMA (Simple Moving Average), which is broadly positive.

However, 61,300 could act as profit booking zone for the trend following traders. "We are of the view that, as long as the index is trading above 60,700 or 20-day SMA. The texture of the chart suggests that positive sentiment is likely to continue in the near future," says Shrikant Chauhan of Kotak Securities.

Above 60,700, the index could move up to 61,300 further upside may also continue which could lift the market till 61,500 or 50-day SMA. On the flip side, below 60,700 uptrends would be vulnerable.