Yes, Berlusconi will go and with him the 1.9 trillion euros of oustanding debts too will go away and lenders are going to fall over each other to lend money for free to Italy. Ok, lets get back to reality.

Nifty (5289.35): Markets opened higher only to come down lower, make a small false break below friday’s low and then head back higher.  These small false breakouts are small clues that market leaves us, typical of B waves, that market is itching to go down.

So, potentially we have one more leg up in the short-term that is likely to end around 5334-5356 (we noted this as the ideal level since  Friday). Watch out India Vix has dropped from 39 to 23, nearing the levels it was before the August decline. A little more of complacency is likely to push markets to danger zone.

If markets do exceed 5356, watch out for the 200 DMA at 5395 (and falling). State bank the biggie reports today. May be this could hold some surprise, positive or negative.  The technical structure for SBI says its undergoing correction but we are unable to take a stand here, the possibility of a strong drop to 1800 or a mild 3-4% upmove are 50-50, so we are not able get much clues through this stock.

Keep side-counters like Voltas, Petronet on screen we will try to do a small futures trade here under ideal conditions.