Sentiment remains bullish

The bull run continues but some momentum has been lost. The Nifty has tested resistance at the 8,800-8,825 level without a clear breakout. However, the index has also registered a sequence of higher highs. Assuming that 8,825 is broken, the next targets would be the resistances in the range of 8,950-9,000, where the September 2016 rally peaked. The all-time high of 9,120 is not too far away.
 
One key factor is that Foreign Portfolio Investors (FPIs) have been net positive since the Budget. The Q3 results have also been much better than the extremely low expectations. However, the Reserve