Nifty(4710): As promised the bigger picture on the Nifty

Basically, the purple wave 3 shown on chart is still in progress and is likely to end around 4380 when the red wave 5 completes its move. This is my preferred road map for the Indian markets. As mentioned in my January 19th 2011 interview with CNBC, the process of retesting the 2009 lows is very much on the cards. We will have some more clarity as to where the markets are headed once the the red wave 5 completes.

Open positions:

Silver: Short at $34.2 stop revised to $33.5, partially booked at $31.4

Apollo Tyres: Long at 64 with stop 59 Target 71

Hero Moto:  Short at 2025 with stop at 2130 tgt 1900

Watch out for Hero, the medium term picture is about to turn a corner, volumes picking up on downsides. Below 1900 might even drop to 1450. We will adjust dynamically.