Indian shares in narrow band as investors dither

* Shares fluctuate in narrow band

* Technology shares slip on worries over U.S. market

* HDFC, Reliance Inds trade positive (Updates to mid-morning)

MUMBAI, July 3 (Reuters) - Indian shares fluctuated in a narrow band early on Friday, with investors not taking significant positions ahead of the federal budget next week and weak Asian cues dampening sentiment.

Traders booked profits in key gainers from the previous session, such as Oil and Natural Gas Corp (ONGC.BO: Quote, Profile, Research) and Tata Steel (TISC.BO: Quote, Profile, Research), while technology stocks were under pressure on worries over the economic turnaround in key markets.

The market could take some trading direction in the second half of the session, after the railway budget is presented in parliament, but the overall mood is likely to be cautious, traders said.

"We won't see much movement because people don't want to take positions, either way. We will see volatility, but by end-of-day, it is likely to be flat," said Ambareesh Baliga, vice president at Karvy Stock Broking.

By 10.55 a.m. (0525 GMT), the 30-share BSE index .BSESN was up 0.15 percent at 14,680.51 points, with 13 components declining. It had slipped as much as 1.1 percent at one point.

Technology stocks dropped on worries about the condition of their key U.S. market, after government data showed the U.S. economy shed more jobs than expected in June, dampening the outlook for an economic turnaround.