Bank Nifty August losses recovered, yesterday move is in style despite it being an expiry day. That is testimony of the underlying market strength in this Index. Rotation here remains strong, one target around 47500 remains an objective to print. PSU banks join once again the bandwagon, there is lot more steam left to realise not just in the short term but in long term. The train just left may not be an exaggeration to say the least. Later in the day WPI numbers. US inflation data did not disturb the global cues. Elevated Crude, Russian Supplies remains points of news, that would resolve on its own. So not to be influenced even remotely at this point of time. The wealth effect is far more powerful to blunt the inflation, at least here. All gains and no pains remain so far on inflation. We did expect range, but the move past our top end was much to our delight. The close is near the previous resistance and thus today's action is vital, though inclined to be on the up. 46150-46250-46450 are the previous supply zones, while 45700-45400-45280 are support. Focus on path than price, PNB is over-weight on the PSU, then led by Canara, SBI to do the honours of ATH from PSU pack. On the Private HDFC is making bottom and can be a long-term space, but market focus is on high beta names at present. For the day stay 45800-46300 range. The PIP graph is pencilled with Elliot current wave is 5 and can potentially hit the ATH. Yesterday, 2 hours post market close of 45700 remains the fulcrum for further gains.
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