Pre-markets: Strong opening seen

Markets are likely to open in the green taking cues from global bourses. However, the direction thereafter will be decided by the Reserve Bank of India's monetary policy review.

On Monday, the US market surged as investors cheered two mergers and good earnings report from Caterpillar. The Nasdaq rallied 2.3% to 2,699. S&P 500 and Dow Jones added around 1% each.

In Asia this morning, markets are trading on a mixed note. The Hang Seng is holding on to Monday's gains and is up 0.4% at 18,849. Investors are more confident about European leaders coming to a broad agreement to contain the region's debt crisis. Nikkei however is down 0.3% to 8,820.

The RBI is likely to hike rates once more by 25 basis points, feel bankers and analysts, in an continued attempt to curb inflation. The central bank on Monday reiterated that inflation remained sticky, but shifted focus to the rising downside risks to growth and a weakening investment climate.

Meanwhile, markets are likely to be volatile today as traders roll-over positions in the futures and options section today.

"Nifty is expected to be range bound for some more time. As on the Call side strike 5200 continues to have the maximum open interest build up of 85.7 lakh shares, and also the strikes of 5100, 5200 & 5300 Call have added the over 34 lakh shares each in OI since expiry, indicating a resistance zone for the Nifty," said Nirmal Bang in a research note.

Titan Industries and Gail would be in fopcus today, along with the rate sensitives like banking, realty and auto. Titan Industries has reported a 15.98 per cent y-o-y increase in Q-2-F-Y-12 net to 148.20 crore. Gail, on the other hand, reported 19 per cent rise in net profit for the September quarter on the back of higher gas trading volumes.

Commodities are also likely to be in the buzzer after a global rally following strong Chinese data.