One quick pullback rally likely

Mumbai: The benchmark indices continued profit booking at higher levels, BSE Sensex was down by 254 points. Among sectors, almost the all the major sectoral indices were traded in the red, but Reality and Small cap index lost the most, shed nearly 1.5 per cent.

Technically, the index consistently facing selling pressure at higher levels, lower. However, currently index is trading near 50-day SMA and intraday texture indicating strong possibility of one quick pullback rally from the current levels.

"We are of the view that, 60500 would be the key support zone for the market and if the index succeeds to trade above the same then we could expect one quick pullback rally from the current levels," says Shrikant Chouhan, head of Equity Research (Retail), Kotak Securities.

Above the same, the index could move up to 61,100-61,300. On the flip side, dismissal of 60,500 may increase further selling pressure. Below 60,500 the index could slip till 60,200-60,100.