The domestic equity market closed in red today, as investors adopted a cautious stance ahead of the RBI monetary policy review outcome tomorrow amid subdued global cues. The BSE Sensex settled 67.28 points, or -0.20 per cent, down at 32,802.44 today, while NSE Nifty index closed 9.50 points, or -0.09 per cent, down at 10,118.25 today. The Nifty50 index slipped below 10,100 during the session, but managed to close above this crucial level, with as many as 33 stocks closing in the red.
The benchmark indices trimmed some losses, but settled lower ahead of Reserve Bank of India's policy outcome due today. The RBI is widely expected to keep policy rates on hold, but investors will watch for any hints of a cut at the February meeting. The central bank kicked off its two-day monetary policy committee meeting on Tuesday. Meanwhile, November's Nikkei/IHS Markit Services Purchasing Managers' Index (PMI) fell to 48.5 - its lowest since August - from 51.7 in October, well below the 50 mark that separates expansion from contraction.
The Nifty index continued its formation of lower highs lower lows for a fifth consecutive session and corrected towards 10,069. It formed a Dragon Fly Doji, as it recovered 50 points from lower levels and closed near its opening levels. Analysts feel that if the momentum remains positive on Wednesday, then a reversal could be in the offing. Now, it has to negate its formation of lower highs lower lows by holding above 10,150 to witness a bounce back move towards 10,250-10,300 zones while a fall below 10,094 could continue its weakness towards 10,000 zones.