"The trend is strong but the short term indicators are slightly overbought. Nifty is also approaching its 50-day EMA of 5230 where it may face strong resistance. We maintain a cautious approach at higher levels around 5230 level and suggest booking profit and look to buy on decline.
On the lower side support is seen at 5095 - 5075 levels and this relief rally could damage only if Nifty future breaks below 4970.
Sensex faces strong resistance around 17400-17450 levels. Avoid buying at higher levels around 5230 - 17450 levels," said Nirmal Bang report.
At 12:10 pm; Bombay Stock Exchange's Sensex was at 17074.74, down 90.80 points or 0.53 per cent. The 30-share index touched intraday low of 17025.59 and high of 17211.80.
National Stock Exchange's Nifty was at 5125.20, down 28.05 points or 0.54 per cent. The broader index touched a high of 5163.75 and low of 5107.55 in trade so far.
BSE Midcap Index was up 0.33 per cent and BSE Smallcap Index gained 0.43 per cent.
BSE FMCG Index was up 0.45 per cent and BSE Auto Index moved 0.17 per cent higher. BSE IT Index declined 1.67 per cent, BSE Oil&gas Index slipped 1.22 per cent and BSE Metal Index was down 1.19 per cent.
Sensex losers included Sterlite Industries (-2.53%), Hindalco Industries (-2.49%), Infosys (-2.08%), Tata Steel (-1.77%) and Sun Pharma (-1.68%).
Hindustan Unilever (3.37%), HeroMotoCorp (2.45%), Bharti Airtel (1.58%), HDFC (1.34%) and Coal India (0.89%) were the major gainers.
Market breadth was positive on the BSE with 1423 gainers against 1072 losers.