Profit taking likely

The Sensex is likely to witness some profit taking today as the index has moved into overbought zone.

The index is likely to witness resistance around 10,725-10,800 levels. On the downside, the index has support around 10,490-10,415 levels.

Market analyst Bharat Momaya expects the Sensex to maintain buoyancy this week and a steep rise in the following week. He also expects the trading volumes to improve dramatically as we enter the results season.

Momaya says that strong numbers are likely to push index to newer heights. He advises to swap index scrips with higher PE ratios to commanding lower than 30 times PE ratios.

He maintains hit medium term target for the Sensex at 13,400.