The sentiments are good from global markets as US markets closed up by around 1.0 %. The Dow Jones closed up by 0.97 %. Most of the Asian markets opened positive in early trade and likely to trade in positive territory. Indian markets are likely to open positive and Nifty is likely to open gap up by 20-30 points. On Monday, Nifty has seen profit booking amid of posted poor results by Maruti and RBI of aggressive tightening of monetary policy. The markets are expecting a hike of 25 bps each in the repo and reverse repo rates. In August series, 5600 call and 5300 put have seen good addition indicating a higher trading range for the Nifty in the near term. Huge call writing was seen at strike 5500 while put options of strike 5300 have the maximum build-up. Our view is cautious.